New Delhi: State-owned Maharatna company Oil India Limited on Friday announced a fresh discovery of natural gas in its third exploratory well in the Andaman shallow offshore block, marking another significant indication of hydrocarbon presence in the region. 

The company said the Vijayapuram-3 (Loc. OAEB) well, drilled under the Offshore Andaman Block AN-OSHP-2018/1 as part of the Open Acreage Licensing Policy (OALP), is located around 15 kilometres off the east coast of the Andaman Islands at a water depth of 355 metres.

The drilling was carried out at a depth of over 1,900 metres in the Eocene formation.

In a regulatory filing to the exchanges, the company stated that initial production testing of the well confirmed the presence of natural gas, with continuous flaring observed after perforation.

The well also showed immediate pressure build-up, followed by production of gas.

“Oil India Limited is pleased to announce the presence of natural gas in its 3rd exploratory well Vijayapuram-3 (Loc. OAEB), drilled 15 km oƯ the east coast of the Andaman Islands at a water depth of 355 meters in the OƯshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP),” it said in its filing.

Oil India Limited said that gas sampling is currently underway to assess the composition and calorific value of the discovery, along with isotope studies to understand the origin of the hydrocarbons.

This marks the second confirmed hydrocarbon presence in the Andaman offshore block, after gas was earlier discovered in the second exploratory well, Vijayapuram-2 (Loc. OAEA), in September 2025.

Out of the three exploratory wells drilled so far in the block, two have now indicated hydrocarbon presence.

The company described the latest find as a “leading indicator” of a possible source, migration pathway, or accumulation of hydrocarbons in the area, which is expected to help refine its future exploration strategy.