State-owned Oil India Ltd (OIL) has reported its second natural gas discovery in the Andaman offshore region, strengthening expectations that the basin could develop into a key hydrocarbon-producing zone in the years ahead. The latest find was made at the Vijayapuram-3 exploratory well, situated around 15 kilometres off the eastern coast of the Andaman Islands at a depth of 355 metres, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Friday.
The discovery follows OIL’s earlier gas strike at the Vijayapuram-2 well in September 2025, making it the second gas-bearing well identified in the block.
OIL said that two of the three exploratory wells drilled so far under its ongoing Andaman exploration programme have confirmed the presence of hydrocarbons, significantly improving the basin’s exploration prospects.
Calling it another encouraging step towards enhancing India’s energy security, Puri said the discovery reflects the growing success of offshore exploration efforts.
In a post on X, the minister said initial production testing conducted at a depth of more than 1,900 metres in the Eocene formation confirmed the presence of natural gas through continuous flaring.
Congratulations !
An ocean of energy opportunities reinforced in the Andaman Sea!
Very happy to report the presence of natural gas in Sri Vijayapuram-3 an exploratory well drilled by Oil India Ltd. 15 km off the east coast of the Andaman Islands at a water…
— Hardeep Singh Puri (@HardeepSPuri)
He also highlighted that under the Samudra Manthan Mission, or National Deep Water Exploration Mission, announced by Prime Minister Narendra Modi on Independence Day 2025, numerous deepwater and ultra-deepwater exploration wells are planned across offshore basins to maximise the country’s hydrocarbon resources.
According to Puri, the latest gas find will support India’s exploration goals and strengthen collaboration with global deepwater exploration specialists.
OIL said preliminary production testing at depths exceeding 1,900 metres showed positive results. After perforation, the well witnessed a rapid pressure build-up and began producing gas, indicating favourable reservoir characteristics.
The consecutive discoveries are being regarded as a significant achievement for India’s offshore exploration sector, particularly in the relatively unexplored Andaman Basin.
Industry experts believe the findings could encourage further exploration and appraisal work aimed at assessing and developing the basin’s hydrocarbon potential, reported news agency PTI.
The company said the Vijayapuram-3 discovery provides further evidence of a functioning petroleum system and may indicate the existence of additional hydrocarbon reserves in the region.
Following the Vijayapuram-2 discovery, OIL launched a detailed appraisal programme that included reprocessing existing seismic data and acquiring nearly 600 square kilometres of additional 3D seismic data.
The company said interpretation and processing of the data are currently in progress and will help shape future appraisal drilling plans.
With two gas discoveries from three exploratory wells, the Andaman offshore basin is increasingly being seen as one of India’s most promising frontiers for future oil and gas exploration.
Responding to Puri’s announcement, OIL said it remains focused on advancing exploration through technological expertise and unlocking the country’s hydrocarbon resources to support long-term energy security.
(With PTI inputs.)
