Oil India has reported the discovery of natural gas in the shallow offshore block KG-DSF/GSKW/2018 within the Krishna-Godavari (KG) Basin, India.
The Matsyapuri formation, previously unappraised, showed a hydrocarbon presence in the Godavari-1 appraisal well at depths between 2,024 and 2,027m, according to Oil India, an Indian government-owned upstream company.
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The Godavari-1 appraisal well is operated solely by Oil India.
Production testing began on 16 October 2026, with natural gas flowing to the surface at rates of up to 200,000 standard cubic metres per day during continuous testing.
The operation also yielded condensate at a rate of approximately 170 barrels of oil per day (bopd), with a wellhead pressure of 1,815psi.
The company is preparing to test higher zones within the same well.
Earlier this month, Oil India signed a revenue sharing contract (RSC) for the special coal bed methane (CBM) Block SR-ONHP-(CBM)-2026/1 in the Singrauli Coalfield region of Madhya Pradesh, India.
The block covers 272.14km², targeting coal seams at depths of 600m to 800m and an average thickness of around 40m.
In its recent annual meeting, Oil India reported crude oil production of 3.45 million metric tonnes and natural gas output of 3.186 billion cubic metres for the financial year 2025-26.
The company achieved a crude oil terminal production rate of 10,566 metric tonnes per day, its highest in fourteen years, and drilled 74 wells during the period.
Reserve Replacement Ratio improved to 1.02 in FY 2025-26. Quarterly crude output rose by 11% year-on-year in Q1 FY27.
For the financial year (FY) 2025-26, Oil India reported a consolidated profit after tax of Rs75.51bn ($795.16m) and a consolidated net worth of Rs537.16bn. Oil India continues to align its offshore exploration and clean energy initiatives with national policy schemes and aims for Net Zero emissions by 2040.
In July 2026, the Indian government sanctioned the National Offshore Exploration Scheme, known as Samudra Manthan, with a total budget allocation of Rs840.84bn covering the period through to financial year 2030–31.
