Oil India Limited (OIL) has reported the occurrence of natural gas in the Andaman offshore block, the first hydrocarbon show in its ongoing shallow-water campaign.

The Andaman offshore gas discovery, identified in the Vijayapuram-2 exploratory well within Offshore Andaman Block AN-OSHP-2018/1, is currently being tested to evaluate its origin, scale and commercial viability, according to a statement by Oil India.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

Natural gas was found in this second exploratory well, which the company secured under the Open Acreage Licensing Policy, reported the Press Trust of India.

“The preliminary analysis of gas samples, collected during intermittent inflow of gas as part of initial production testing, has confirmed the presence of natural gas. Further gas isotope studies are being undertaken so as to understand the genesis of the gas,” the statement said.

Oil India added: “As per preliminary assessment, this could be a leading indicator of the presence of source or migration pathway or accumulation of hydrocarbon, which will help in future exploration and drilling strategy.”

The company noted: “OIL is also undertaking additional testing of higher-up prospects to further evaluate the reported occurrence of gas.”

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

It stated that this is the first reported occurrence of hydrocarbons during the ongoing exploration campaign in the Andaman Shallow Offshore Block.

The Oil and Natural Gas Corporation (ONGC) began drilling an ultra-deep-water well, ANE-E, in the Andaman offshore block in March this year. However, it did not indicate the results of the drilling.

OIL and ONGC have been exploring the Andaman Sea for hydrocarbon deposits to help lower India’s dependence on imported oil (88%) and foreign natural gas (50%).

India’s Petroleum and Natural Gas Minister, Hardeep Singh Puri, said the natural gas discovery was made in a well drilled 9.2 nautical miles (17km) offshore from the east coast of the Andaman Islands, at a water depth of 295m and a target depth of 2,650m.

“Initial production testing of the well in the range of 2,212–2,250m has established the presence of natural gas with intermittent flaring. The gas samples, brought by ship to Kakinada, were tested and found to be 87% methane,” the minister said.

“The size of the gas pool and commercial viability of the discovery will get verified in the coming months, but establishing the presence of hydrocarbons in the Andaman basin is a major step in confirming our long-held belief that Andaman basin is rich in natural gas, in line with discoveries in the entire area from Myanmar in north to Indonesia in the south in this belt,” Puri added.

The minister has long highlighted the Andaman as a prospective basin. This OIL find is the first in the region during the current campaign.