Natural Gas discovery off Andaman Coast signals potential energy breakthrough for India

Oil India Limited (OIL) has announced a landmark discovery of natural gas reserves off the coast of the Andaman Islands, marking the first confirmed hydrocarbon find in the ongoing exploration campaign in the region. The state-owned energy firm has yet to estimate the size and commercial viability of the find.

The discovery was made in the Vijayapuram-2 exploratory well, drilled within the Offshore Andaman Block AN-OSHP-2018/1, acquired under the Open Acreage Licensing Policy (OALP). Preliminary analysis of gas samples collected during initial production testing confirmed the presence of natural gas. Additional isotope analysis is underway to determine the origin and formation characteristics of the gas.

Oil India, in collaboration with Oil and Natural Gas Corporation (ONGC), has been pursuing exploration in the Andaman Sea to identify hydrocarbon reserves that could reduce India's dependence on imports — currently 88% for oil and about 50% for natural gas. ONGC has also commenced drilling an ultra-deepwater well (ANE-E) in March, with results still awaited.

OIL termed the find a “leading indicator” of hydrocarbon presence in the basin and said it will significantly guide future exploration and drilling activities. Further testing is underway to evaluate additional prospects in the region.

Oil Minister Hardeep Singh Puri highlighted that the well lies 9.2 nautical miles (17 km) east of the Andaman coast at a water depth of 295 metres, with a target drilling depth of 2,650 metres. Initial production testing between 2,212 and 2,250 metres depth recorded intermittent gas flaring. Laboratory testing of samples in Kakinada revealed a high methane concentration of 87%.

While commercial viability assessments are ongoing, the discovery reinforces the belief that the Andaman basin could emerge as a promising frontier for India’s energy security, consistent with hydrocarbon finds in neighbouring regions stretching from Myanmar to Indonesia.