Tarun Karthick
Sri Vijaya Puram, 27 September 2025
In a significant development for India’s energy sector, Oil India Limited (OIL) has reported the first occurrence of hydrocarbons in the Andaman offshore basin. The discovery was announced after preliminary testing of the Sri Vijayapuram-2 exploratory well, drilled in the Shallow Offshore Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, termed the find as opening “an ocean of energy opportunities” in the Andaman Sea. He revealed that the Sri Vijayapuram-2 well is located 9.20 nautical miles (17 km) from the shoreline on the east coast of the Andaman Islands, in 295 meters water depth, and was drilled to a target depth of 2,650 meters.
According to the Minister, initial production testing between depths of 2,212 and 2,250 meters established the presence of natural gas with intermittent flaring. Gas samples transported to Kakinada for laboratory analysis confirmed a composition of 87% methane, indicating high-quality natural gas.
“This is a major step in confirming our long-held belief that the Andaman basin is rich in natural gas, in line with discoveries in the wider region stretching from Myanmar in the north to Indonesia in the south,” Puri said. He added that while the size of the gas pool and its commercial viability will be verified in the coming months, the occurrence itself marks a breakthrough for India’s exploration drive.
The Minister linked the discovery to the Deepwater Mission announced by Prime Minister Narendra Modi on Independence Day, under which a large number of deepwater exploratory wells are planned across India’s offshore basins. “This occurrence of natural gas will help us take forward our exploration ambitions in coordination with global deepwater exploration experts like Petrobras, bp, Shell, and ExxonMobil, and will be a significant milestone in our journey through Amrit Kaal,” he said.
Oil India Limited, India’s second-largest national oil company, echoed the significance of the find, noting that it is the first reported hydrocarbon occurrence in the ongoing Andaman exploration campaign. The company stated that it remains committed to advancing exploration in the region to strengthen India’s energy security and reduce import dependence.
While establishing the commercial scale of the discovery will take time, the confirmation of hydrocarbons in the Andaman basin could open up a new frontier for India’s offshore energy sector, which until now has largely focused on the Krishna-Godavari, Mumbai Offshore, and Cauvery basins.
If proven commercially viable, the Andaman discovery could become a key contributor to India’s long-term strategy of achieving greater self-reliance in energy during the ongoing Amrit Kaal.
