Port Blair: Oil India Ltd has reported a second natural gas discovery in the Andaman offshore basin, strengthening the case for the region to emerge as a potential hydrocarbon-producing zone in India. The latest find was made in the Vijayapuram-3 exploratory well located in the Andaman Shallow Offshore Block AN-OSHP-2018/1.
The development comes as India intensifies efforts to reduce dependence on imported crude oil and natural gas by boosting domestic production. The new discovery adds to growing evidence of hydrocarbon potential in the Andaman basin, which has increasingly attracted attention from policymakers and energy companies.
Second discovery strengthens exploration confidence
According to the company, the Vijayapuram-3 well is situated around 15 km off the east coast of the Andaman Islands and was drilled in a water depth of about 355 metres. Initial production testing in the Eocene formation at a depth exceeding 1,900 metres confirmed the presence of natural gas through continuous flaring.
The company noted that the well exhibited immediate pressure build-up after perforation and began producing gas, indicating the existence of a functioning hydrocarbon system in the area. This is considered a positive sign in oil and gas exploration, as it suggests that the geological conditions required for hydrocarbon accumulation are present.
This marks the second hydrocarbon discovery in the block, following the earlier gas find in the Vijayapuram-2 well reported in September 2025. With hydrocarbons encountered in two out of the three wells drilled so far, exploration success rates in the block appear encouraging.
Ongoing studies to assess viability
Oil India has initiated further studies to evaluate the characteristics and commercial potential of the newly discovered gas. Gas sampling is currently underway to determine its composition and calorific value, while isotope analysis is being conducted to understand its origin.
Although the discovery is significant, the company clarified that commercial viability has not yet been established. Further appraisal activities will be required to assess the size, quality and recoverability of the reserves before any production decisions can be made.
The company has also undertaken extensive seismic studies in the region. Existing 2D seismic data has been reprocessed, and around 600 sq km of 3D seismic data has been acquired. The processing and interpretation of this data are currently in progress and are expected to guide future drilling plans.
Strategic importance of Andaman basin
The Andaman offshore basin is increasingly being viewed as a frontier exploration area with strong potential. Its geological similarities to hydrocarbon-rich regions in Southeast Asia have made it an area of growing interest.
Repeated discoveries, even at an early stage, significantly improve confidence in the basin’s long-term prospects. Experts believe that continued exploration success could eventually position the Andaman region as an important contributor to India’s energy needs.
For India, developing domestic gas resources is a key priority, especially at a time when global energy markets remain volatile. Increasing local production could help reduce import bills, improve energy security and support economic growth.
Way forward for exploration
Oil India is expected to move ahead with appraisal drilling once the current data analysis is completed. These efforts will help determine whether the discoveries can be commercially developed.
The latest findings are likely to play a crucial role in shaping future exploration strategies in the region. While challenges remain, the discovery reinforces optimism that the Andaman offshore basin could hold substantial hydrocarbon resources.
In conclusion, the second gas discovery in the block marks another important milestone in India’s energy exploration efforts. If further studies confirm commercial viability, the Andaman basin could emerge as a key energy hub in the coming years.