New Delhi: State-run Oil India Limited (OIL) on Friday said it has reported the presence of natural gas in its third exploratory well in the Andaman shallow offshore block, further indicating hydrocarbon potential in the region.In a regulatory filing to stock exchanges, the company said natural gas was encountered in exploratory well Vijayapuram-3, drilled 15 km off the east coast of the Andaman Islands at a water depth of 355 metres in an offshore block under the Open Acreage Licensing Policy (OALP).“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. Post perforation, immediate pressure build up was observed and well started to produce,” it said.It added that gas sampling is being undertaken to assess its composition and calorific value and to carry out isotope studies to understand its genesis.With this, OIL has established the presence of hydrocarbons in two of the three exploratory wells drilled so far in the Andaman offshore block. The first indication of natural gas in the region was reported from its second exploratory well, Vijayapuram-2, in Sept 2025. Following that discovery, OIL launched an appraisal programme to assess the extent of the find.OIL said a preliminary assessment of the latest well indicates the presence of a hydrocarbon source, migration pathway or accumulation in the prospect, which will help it plan future exploration activities in the region.As part of the appraisal programme, the company has reprocessed available 2D seismic data and completed the acquisition of an additional 600 sq km of 3D seismic data. Based on the results, OIL plans to drill appraisal wells to further evaluate the hydrocarbon potential of the block.
