Second natural gas discovery by OIL in Andaman offshore block boosts exploration prospects
Business 05 Jun, 2026

Second natural gas discovery by OIL in Andaman offshore block boosts exploration prospects

Business To Business, Mumbai, 5th June, 2026:  Oil India Limited has made its second natural gas discovery in the offshore Andaman region, strengthening expectations that the basin could become an important new hydrocarbon-producing area for India.
Details of the discovery
According to Hardeep Singh Puri, the latest discovery was made at the Vijayapuram-3 exploratory well.
Key details include:

  • Location: Approximately 15 km off the east coast of the Andaman Islands.
  • Water depth: About 355 metres.
  • Type of discovery: Natural gas-bearing reservoir.
Second success in the block
The discovery follows OIL's earlier success at Vijayapuram-2, where natural gas was discovered in September 2025.
With two successful gas-bearing wells now identified in the same offshore block, confidence is growing about the hydrocarbon potential of the Andaman offshore basin.
Strategic significance
The Andaman offshore region has long been regarded as a frontier exploration area due to its relatively limited drilling history compared with established producing basins in western and eastern India.
The latest discovery could:
  • Enhance India's domestic energy resources.
  • Reduce dependence on imported natural gas over the long term.
  • Encourage further exploration activity in the basin.
  • Attract additional investment in offshore energy development.
What happens next?
Following the discovery, OIL is expected to undertake further appraisal and evaluation activities to determine:
  • The size and commercial viability of the gas reserves.
  • Production potential.
  • Infrastructure requirements for future development.
If subsequent studies confirm substantial reserves, the Andaman offshore basin could emerge as a significant contributor to India's natural gas production in the coming years, supporting the country's broader energy security objectives.

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