India's Energy Map Expands: OIL Hits Gas in the Andaman Sea

Oil India Limited (OIL) has announced the first natural gas discovery in its shallow-water offshore block AN-OSHP-2018/1 in the Andaman Basin, marking a significant step forward in India’s hydrocarbon exploration efforts.

The discovery was made at Vijayapuram-2, the company’s second exploratory well drilled under the third round of the Open Acreage Licensing Policy (OALP). Preliminary evaluations suggest the presence of a source rock, migration pathway, or hydrocarbon accumulation, which could guide future exploration and drilling strategies. Further testing is underway in deeper and more promising zones to assess the resource potential.

This is OIL’s first hydrocarbon find in the Andaman region, although no crude oil has been discovered so far. The Directorate General of Hydrocarbons (DGH) classifies the Andaman Basin as a Category II basin, indicating sub-commercial discoveries with potential for future commercial viability.

The find strengthens exploration momentum in the underexplored offshore regions of India, and could pave the way for enhanced domestic energy production in the long term.

News by Rahul Yelligetti.