Oil India Reports Natural Gas Discovery in Andaman Shallow Offshore Block

Oil India Limited (OIL), the country’s second-largest state-run explorer, has announced a significant natural gas occurrence in the Andaman Shallow Offshore Block, marking a promising development in India’s quest to boost domestic hydrocarbon production and strengthen energy security.

Discovery Details

In an official statement, Oil India confirmed the presence of natural gas in exploratory well AN-OSHP-2022/1, located in the Andaman Basin. The block, awarded under the Open Acreage Licensing Policy (OALP) Round VII, lies within the Andaman Shallow Offshore region, a frontier basin with high exploration potential.

Preliminary analysis from the drilling and testing operations indicates reservoir zones with hydrocarbon-bearing formations, signaling the potential for future commercial extraction.

Strategic Significance

This marks Oil India’s first major gas find in the Andaman region, aligning with India’s vision to diversify exploration activities beyond traditional basins like Assam-Arakan and the Krishna-Godavari.
The Andaman offshore region, though relatively unexplored, has been viewed by geologists as a frontier hydrocarbon province with potential for large-scale gas accumulations.

Industry experts believe that if further appraisal confirms commercial viability, this discovery could open a new exploration frontier for India’s upstream sector and reduce import dependency on natural gas.

Boost to India’s Energy Goals

India currently imports over 50% of its natural gas requirements. Discoveries like these are critical to the government’s mission of transforming India into a gas-based economy, targeting a 15% share of natural gas in the energy mix by 2030.

Oil India, alongside ONGC and other explorers, has been ramping up frontier basin exploration under the OALP framework to identify new reserves across the country.

Next Steps

Oil India plans to undertake detailed appraisal drilling, seismic data interpretation, and production testing to determine the extent and commercial viability of the discovery.
The company is expected to submit a comprehensive field development plan to the Directorate General of Hydrocarbons (DGH) after further evaluations.

Company’s Statement

In a brief note, OIL said, “The occurrence of natural gas in the Andaman Shallow Offshore Block reinforces the company’s commitment to expanding exploration frontiers and contributing to India’s energy security.”

The firm also emphasized its continued focus on domestic exploration, technological innovation, and sustainable energy development.

The discovery in the Andaman offshore marks a notable milestone in India’s exploration journey, potentially unlocking a new hydrocarbon province. As OIL moves into the next phase of appraisal and testing, the find could play a pivotal role in enhancing indigenous gas supply and supporting the nation’s clean energy transition.