In a significant milestone for India’s energy exploration efforts, state-run Oil India Ltd (OIL) has announced the first occurrence of natural gas in one of its shallow-water offshore blocks in the Andaman basin. The development was reported from OIL’s second exploratory well, Vijayapuram-2, drilled in the AN-OSHP-2018/1 block.
A Key Step in Offshore Exploration
This marks the first time OIL has reported a hydrocarbon occurrence in its Andaman blocks, signalling new potential for future discoveries. The company currently holds two shallow-water blocks — AN-OSHP-2018/1 and AN-OSHP-2018/2 — secured under the third round of the Open Acreage Licensing Policy (OALP).
According to OIL, preliminary assessments suggest that this occurrence could indicate the presence of a hydrocarbon source, migration pathway, or accumulation — all of which are critical signs that hydrocarbons may be present in commercially viable quantities.
Testing and Future Drilling Plans
While the company has yet to confirm a full discovery, additional testing of higher-level prospects is underway to further assess the occurrence. The data collected will shape OIL’s future exploration and drilling strategies, as it aims to confirm the commercial potential of the region.
An occurrence is an early-stage indicator of hydrocarbons during exploration, whereas a discovery quantifies the hydrocarbon reserves and determines the feasibility of extraction and commercial production.
Strategic Importance for India’s Energy Goals
Oil Minister Hardeep Singh Puri has expressed optimism about India’s offshore potential, suggesting that a “Guyana-sized” discovery could be possible in the Andaman waters — a find that would dramatically reshape the nation’s oil and gas landscape.
Currently, the Andaman is classified as a Category II basin by the Directorate General of Hydrocarbons (DGH), meaning it has a sub-commercial discovery and potential for future commercial production.
A Boost to Domestic Hydrocarbon Exploration
OIL’s breakthrough aligns with India’s broader push to boost domestic hydrocarbon production and reduce import dependency. Other state-run explorers, including ONGC, are also drilling in the region with hopes of major discoveries.
Although it’s still early days, this first gas occurrence represents a crucial step forward in unlocking the Andaman basin’s vast energy potential.
