Oil India Strikes Gas Again with Second Andaman Offshore Find

Oil India Striking Gas Again: Second Major Discovery in Andaman Offshore Block

In a regulatory filing submitted to stock exchanges, state-run explorer Oil India Ltd (OIL) announced a second consecutive natural gas discovery in the Andaman shallow offshore basin. The breakthrough, encountered at the Vijayapuram-3 exploratory well, strengthens hopes that the maritime boundary could soon emerge as India’s next major hydrocarbon-producing frontier.

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The find aligns closely with India’s broader strategic mandate to accelerate domestic production and systematically reduce dependence on expensive imported crude oil and liquefied natural gas (LNG).

Technical Details of the Vijayapuram-3 Discovery

The exploration campaign was carried out under the central government’s Open Acreage Licensing Policy (OALP). Initial exploration metrics from the offshore site reveal a highly functional reservoir system:

• Geographic Coordinates: Located roughly 15 kilometers off the eastern coast of the Andaman Islands.

• Drilling Depth Profile: The well was spudded at a water depth of 355 meters. Heavy drilling operations penetrated the Eocene geological formation at a target depth exceeding 1,900 meters.

• Reservoir Performance: Upon technical perforation, the well demonstrated an immediate, sharp pressure build-up. Initial production potential was confirmed at the rig site through successful continuous flaring operations.

Tracking the Andaman Block Exploitation Rate

The Vijayapuram-3 well represents the second definitive success out of three exploratory wells drilled across the AN-OSHP-2018/1 block so far.

What Happens Next? Establishing Commercial Viability

While the back-to-back discoveries confirm that critical geological conditions—including hydrocarbon source systems, migration pathways, and physical accumulations—exist in the basin, commercial viability has not yet been locked in.

To determine the exact size, quality, and commercial scale of the reserves, the state explorer is deploying an extensive appraisal roadmap:

1. Gas Composition Sampling: Rig crews are currently extracting raw gas samples to analyze the specific chemical composition and overall calorific value of the resource.

2. Isotope Analytics: Geological scientists are running isotope studies to trace the exact origin and maturation timeline of the trapped hydrocarbons.

3. Expanded 3D Seismic Mapping: Building on older 2D seismic data, the company has acquired an additional 600 square kilometers of high-resolution 3D seismic data covering the prospect area. Data processing and software interpretation are currently underway to guide future appraisal drilling locations.

Market Reaction: Following the exchange announcement, shares of Oil India traded flat, closing near ₹488.95. Despite the immediate quiet session, the public sector stock maintains a strong positive trajectory, gaining more than 14% in year-to-date market yields.

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