Gas flaring during initial production testing at Oil India’s Sri Vijayapuram-3 well in the Andaman Sea, confirming the presence of natural gas.
NEW DELHI: Oil India Limited (OIL) has reported the presence of natural gas in its Sri Vijayapuram-3 exploratory well in the Andaman Sea.
This marks the second hydrocarbon discovery in the company’s ongoing three-well exploration campaign in the Andaman Shallow Offshore Block AN-OSHP-2018/1.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced the development on social media.
“An ocean of energy opportunities reinforced in the Andaman Sea! Very happy to report the presence of natural gas in Sri Vijayapuram-3 an exploratory well drilled by Oil India Ltd. 15 km off the east coast of the Andaman Islands at a water depth of 355 meters,” he posted.
Puri added:
“Initial production testing of the well at the depth of 1,900 plus meters in the Eocene formation has established the presence of natural gas through continuous flaring.”
He noted that OIL is carrying out gas sampling to assess the composition and calorific value of the gas, along with isotope studies to understand its origin.
Background on the Discoveries
This latest find follows the first discovery at the nearby Sri Vijayapuram-2 well in September 2025.
That well, drilled about 17 km from the east coast at a water depth of 295 meters to a target depth of 2,650 meters, showed natural gas with approximately 87 percent methane content during initial testing between 2,212 and 2,250 meters, with intermittent flaring.
Both wells are part of a three-well program in the block awarded to OIL under the Open Acreage Licensing Policy (OALP) Bid Round II in 2019.
Hydrocarbons have now been encountered in two of the three wells drilled so far.
Geological and Strategic Context
The Andaman basin is geologically promising, with similarities to hydrocarbon-rich areas in neighboring regions such as Myanmar and Indonesia.
Repeated hydrocarbon shows validate its potential, though further appraisal drilling, seismic data analysis, and studies are needed to determine reserve size and commercial viability.
OIL has acquired and is processing 3D seismic data in the area.
Government Push for Deepwater Exploration
The discoveries support India’s Samudra Manthan Mission, also known as the National Deep Water Exploration Mission.
Prime Minister Narendra Modi announced the mission on Independence Day 2025.
It aims to drill a large number of deepwater and ultra-deepwater wells across offshore basins to boost domestic production and reduce import dependence.
Puri highlighted this context:
“Under the Samudra Manthan Mission… a large number of deepwater & Ultra deepwater exploration wells are planned in our offshore basins to fully exploit our hydrocarbon reserves. Presence of hydrocarbon is now reported in two wells out of three wells drilled by current exploratory campaign off Andaman Basin.”
He added that India would advance exploration ambitions in coordination with global deepwater experts.
Implications for Energy Security
India relies heavily on imported natural gas and crude oil.
Successful development in the Andaman region could enhance energy self-reliance, support economic growth, and improve supply security.
However, moving from discovery to production will require significant investment in appraisal, infrastructure, and technology due to the deepwater setting.
OIL will continue analysis and provide further updates as studies progress.
This development strengthens India’s exploration efforts in frontier offshore basins and advances its Atmanirbhar energy goals.
Details on reserve estimates and potential development timelines are expected in the coming months.
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