Oil India Strikes Second Major Natural Gas Reserve Off the Andaman Islands
New Delhi, Saturday, 6 June 2026.
Amid global energy concerns, Oil India Limited has discovered a second major natural gas reserve 15 kilometers off the Andaman Islands, potentially reducing the nation’s reliance on imported fuels.
A Strategic Milestone in Deepwater Exploration
On June 4, 2026, state-owned energy firm Oil India Limited (ticker: OIL) announced a successful natural gas discovery at its third exploratory well, Sri Vijayapuram-3 [1][2]. Situated in the AN-OSHP-2018/1 block, the site lies 15 kilometers off the eastern coast of the Andaman Islands at a water depth of 355 meters [1][2]. Hardeep Singh Puri, the Minister for Petroleum and Natural Gas, confirmed the discovery, stating that it underscores the vast energy potential of the Andaman Sea basin and marks a distinct success in the ongoing regional exploration campaign [2].
Building on Past Successes in the Basin
This recent find represents the second reported presence of hydrocarbons in the Andaman Shallow Offshore Block during the current exploration cycle [1]. The company previously discovered natural gas at the Vijayapuram-2 exploratory well in September 2025 [1]. Following that initial success, Oil India Limited launched an extensive appraisal program, which included completing the reprocessing of historical 2D seismic data and acquiring an additional 600 square kilometers of new 3D seismic data [1].
Future Appraisals and Commercial Feasibility
Moving forward, Oil India Limited is actively processing and interpreting the recently acquired 3D seismic data [1]. Upon the completion of this analytical phase, the company plans to drill additional appraisal wells within the block [1]. Furthermore, detailed reservoir characterization and extended production testing are scheduled for the Sri Vijayapuram-3 site [2]. These future operations aim to conclusively evaluate the commercial feasibility and total recoverable volume of the gas discovery, though the exact timeline for commercial extraction remains pending [alert! ‘Sources do not provide a specific date or timeline for the completion of the commercial feasibility evaluations or potential commercial extraction’] [2].