Oil India Discovers Natural Gas Reserves Off Andaman Islands

Oil India Ltd (OIL) has announced the discovery of natural gas reserves off the Andaman Islands, marking the first reported occurrence of hydrocarbons in the ongoing exploration campaign in the region. The state-owned firm, however, did not provide an estimate of the size of the find.

According to OIL, natural gas was detected in the second exploratory well, Vijayapuram-2, drilled in the Offshore Andaman Block AN-OSHP-2018/1, which the company acquired under the Open Acreage Licensing Policy (OALP). Preliminary analysis of gas samples collected during initial production testing confirmed the presence of natural gas, and further isotope studies are underway to understand its formation.

Oil India and Oil and Natural Gas Corporation (ONGC) have been exploring the Andaman Sea in hopes of identifying hydrocarbon reserves that could reduce India’s heavy reliance on imports, currently 88% for oil and 50% for gas. ONGC had started drilling an ultra-deepwater well (ANE-E) in March, though results have not yet been disclosed.

OIL described the discovery as a “leading indicator of the presence of source or migration pathways or accumulation of hydrocarbon,” which will guide future exploration and drilling strategies. Additional testing is underway to evaluate higher-up prospects in the area.

Oil Minister Hardeep Singh Puri shared details of the find, stating that the well is located 9.2 nautical miles (17 km) from the east coast of the Andaman Islands at a water depth of 295 metres and a target depth of 2,650 metres. Initial production testing between 2,212 and 2,250 metres confirmed intermittent gas flaring, with samples tested in Kakinada showing 87% methane content.

While the commercial viability and size of the gas pool will be assessed in the coming months, officials say the discovery strengthens the belief that the Andaman basin is rich in natural gas, consistent with hydrocarbon finds in the region stretching from Myanmar in the north to Indonesia in the south.

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