State-run Oil India Limited (OIL) has announced the discovery of natural gas in its third exploratory well, Vijayapuram-3, located in the Andaman shallow offshore block. This discovery further underscores the hydrocarbon potential of the region, following a similar find in the second well, Vijayapuram-2, reported in September 2025.
Discovery Details
The Vijayapuram-3 well, drilled 15 km off the east coast of the Andaman Islands at a water depth of 355 meters, encountered natural gas at a depth of over 1900 meters in the Eocene formation. Initial production testing confirmed the presence of natural gas through continuous flaring, with immediate pressure build-up post-perforation.
"Initial production testing of the well at the depth of 1900 plus meters in the Eocene formation has established the presence of natural gas through continuous flaring," OIL stated in its regulatory filing.
Exploration and Appraisal Program
Following the discovery in Vijayapuram-2, OIL launched an appraisal program to assess the extent of the hydrocarbon find. The company has reprocessed available 2D seismic data and completed the acquisition of an additional 600 sq km of 3D seismic data. Based on these results, OIL plans to drill further appraisal wells to evaluate the block's hydrocarbon potential.
Future Exploration Plans
OIL's preliminary assessment suggests a hydrocarbon source, migration pathway, or accumulation in the prospect, which will guide future exploration activities. The company is undertaking gas sampling to assess composition and calorific value, alongside isotope studies to understand the gas's genesis.
| Well Name | Discovery Date | Depth (meters) | Hydrocarbon Type |
|---|---|---|---|
| Vijayapuram-2 | Sept 2025 | 1900+ | Natural Gas |
| Vijayapuram-3 | June 2026 | 1900+ | Natural Gas |
Market Implications
The discovery of natural gas in the Andaman block could have significant implications for India's energy sector, potentially reducing reliance on imports and enhancing energy security. The ongoing exploration and appraisal activities by OIL are crucial in determining the full potential of this offshore block.
