The Andaman Is Delivering: Oil India Hits Gas in Its Third Well, Two Strikes in a Row and Counting

India’s offshore energy ambitions received a significant boost on Friday as state-owned Oil India Limited announced the discovery of natural gas at its third exploratory well in the Andaman shallow offshore block, marking the second confirmed hydrocarbon presence in the region within less than a year.

The Vijayapuram-3 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. Drilling reached over 1,900 metres in the Eocene formation . In a regulatory filing, the company confirmed that initial production testing established the presence of natural gas , with continuous flaring observed after perforation, followed by pressure build-up and gas flow.

The latest find comes after a methane-rich discovery at the Vijayapuram-2 well in September 2025, meaning two out of three exploratory wells in the block have now confirmed hydrocarbon presence. Oil India described the new discovery as a “leading indicator” of a possible source, migration pathway, or accumulation of hydrocarbons, offering important clues for future exploration strategy in the basin.

The September discovery was itself seen as a breakthrough moment. Union Petroleum Minister Hardeep Singh Puri had then said that “an ocean of energy opportunities opens up in the Andaman Sea,” noting that gas samples transported to Kakinada tested at 87 per cent methane, indicating strong commercial quality . He added that the size and viability of the reserves would be assessed in the coming months. Early surveys have suggested potential reserves of 307 to 370 million metric tonnes of oil equivalent in the broader basin, drawing comparisons with frontier energy regions that transformed economies such as Guyana.

These consecutive discoveries are central to Prime Minister Narendra Modi’s Samudra Manthan mission , announced in his Independence Day address in August 2025. The national deep-water exploration programme aims to accelerate offshore drilling to uncover untapped reserves of crude oil, natural gas, and critical minerals across major sedimentary basins including Bengal-Purnea, Mahanadi, Krishna-Godavari, Cauvery, and Andaman. The plan targets a scale-up from around 30 exploratory wells annually to at least 100 wells per year by 2026-27.

To support this expansion, India is also pursuing deeper collaboration with global energy companies such as BP , ExxonMobil , TotalEnergies , and Petrobras , bringing in advanced technology and capital for high-risk deepwater exploration. A recent understanding between ONGC and BP for stratigraphic drilling in multiple offshore basins further reflects growing international interest in India’s energy frontier.

Despite strong geological promise, the Andaman-Nicobar Basin has historically remained underexplored due to high costs, technical challenges, and limited deepwater seismic data. The current back-to-back discoveries mark a notable shift in that long-standing narrative.

If sustained, these finds could significantly contribute to India’s ambition of raising natural gas to 15 per cent of its energy mix by 2030 , reducing import dependence and strengthening long-term energy security .