Oil India has confirmed the presence of natural gas at its third exploratory well off the east coast of the Andaman Islands, marking the second hydrocarbon discovery in the company’s ongoing offshore campaign in the region.
The well, Vijayapuram-3, is situated in 355 metres of water within the Andaman offshore block AN-OSHP-2018/1 and was drilled as part of operations conducted under India’s Open Acreage Licensing Policy (OALP).
The latest finding means the state-owned energy company has now identified hydrocarbons in two of the three wells it has drilled in the area.
Testing at Vijayapuram-3 was carried out at a depth of more than 1,900 metres in the Eocene formation.
Continuous flaring during initial production testing provided direct evidence of natural gas presence, while the well recorded immediate pressure build-up following perforation, which led to gas production.
Oil India is currently conducting further gas sampling to analyse the composition and calorific value of the resource and to perform isotope studies.
The company stated that preliminary assessments indicate the finding points to the existence of a source, migration route or accumulation of hydrocarbons in the area, and expects the outcome will assist in planning future exploration activities.
The latest result follows an earlier gas occurrence at Vijayapuram-2, which Oil India reported in September 2025.
In the wake of that discovery, the company launched an appraisal programme encompassing the reprocessing of available two-dimensional seismic data and the acquisition of an additional 600 square kilometres of three-dimensional seismic data.
Processing of both the new and existing 3D seismic datasets is ongoing, with the drilling of appraisal wells planned once that work is complete.
Block AN-OSHP-2018/1 covers approximately 3,669 square kilometres and was awarded to Oil India in 2019 under OALP Round II.
The offshore portion of the block spans 3,438.61 square kilometres, with the remaining 230.64 square kilometres situated onshore.
Under the terms of its committed work programme, Oil India agreed to acquire marine seismic data and drill four exploratory wells in partnership with the Government of India.
The company received approval to modify part of its planned 3D seismic acquisition programme after submitting a swap proposal to the Directorate General of Hydrocarbons in late 2019, replacing a portion of that work with additional 2D seismic coverage.
The current exploration campaign is focused on further assessing the hydrocarbon potential across the broader block area.
The Andaman offshore region has drawn increasing attention as India looks to reduce its dependence on imported hydrocarbons and unlock the potential of its frontier basins.
The successive gas indications at Vijayapuram-2 and Vijayapuram-3 represent a meaningful step forward in establishing whether the area can support a commercially viable resource base.
Continued appraisal activity, underpinned by the new seismic data being processed, will be critical in determining the scale and quality of any future development.
