Oil India Limited (OIL) has announced the presence of natural gas in its third exploratory well, Vijayapuram-3, drilled in the Andaman shallow offshore block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).
The well was drilled about 15 Km off the east coast of the Andaman Islands at a water depth of 355 metres.
With this discovery, OIL has established the presence of hydrocarbons in two of the three exploratory wells drilled in the block so far.
The company said initial production testing at a depth of over 1,900 metres in the Eocene formation established the presence of natural gas through continuous flaring.
Following perforation, the well recorded an immediate pressure build-up and started producing gas.
OIL said further gas sampling is being carried out to determine the composition and calorific value of the gas and to undertake isotope studies to understand its genesis.
According to the company, preliminary assessment points to the presence of a hydrocarbon source, migration pathway or accumulation within the prospect, which will help guide future exploration activities.
The discovery follows the occurrence of natural gas in the Vijayapuram-2 exploratory well, which was reported on 26 September 2025.
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OIL said it has already initiated an appraisal programme for the block.
The company has completed reprocessing of available 2D seismic data and acquisition of an additional 600 sq Km of 3D seismic data.
Processing of both newly acquired and legacy 3D seismic datasets is currently underway.
The company said appraisal well drilling will be taken up after processing and interpretation of the seismic data.
