Oil India Limited (OIL) has made a significant breakthrough in its exploration efforts in the Andaman Sea, with the discovery of natural gas reserves in the Vijayapuram-2 well. This marks a historic moment as it is the first confirmed hydrocarbon find in the region, following the acquisition of the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).
The initial production testing conducted at the well site confirmed the presence of natural gas, although the size and commercial viability of the find are yet to be determined. Further analysis, including isotope testing, is currently underway to understand the origin and formation characteristics of the gas.
Oil India, in partnership with Oil and Natural Gas Corporation (ONGC), has been actively exploring the Andaman Sea to discover potential hydrocarbon reserves that could help reduce India’s heavy dependence on imports. With India currently importing 88% of its oil and approximately 50% of its natural gas, the discovery of gas reserves in the Andaman basin is a promising development.
ONGC has also started drilling an ultra-deepwater well (ANE-E) in the region, with the results of this exploration still pending. The discovery in the Vijayapuram-2 well is seen as a positive sign for future exploration and drilling activities in the area.
Oil Minister Hardeep Singh Puri emphasized the strategic location of the well, which lies just 9.2 nautical miles east of the Andaman coast at a depth of 295 meters. Initial production testing revealed intermittent gas flaring between 2,212 and 2,250 meters, with laboratory tests showing a high methane concentration of 87%.
While assessments of the commercial viability of the discovery are ongoing, the potential of the Andaman basin to emerge as a key source of energy for India’s energy security is becoming increasingly evident. The discovery aligns with the hydrocarbon finds in neighboring regions, extending from Myanmar to Indonesia, and could play a crucial role in advancing India’s energy independence.
