Oil India Finds Natural Gas In Andaman Basin Again, Boosting Hopes Of Major Offshore Energy Discovery
Oil India Finds Natural Gas In Andaman Basin Again, Boosting Hopes Of Major Offshore Energy Discovery Published By, Last Updated: June 05, 2026, 18:43 IST
Oil India Finds Natural Gas In Andaman Basin Again, Boosting Hopes Of Major Offshore Energy Discovery Published By, Last Updated: June 05, 2026, 18:43 IST Oil India Ltd discovers new natural gas at Sri Vijaya Puram-3 in the Andaman Sea, the second Andaman basin find, boosting Indias offshore energy prospects. State-run Oil India Ltd (OIL) has reported another natural gas discovery in the Andaman offshore basin, strengthening expectations that the region could emerge as one of India’s most promising new hydrocarbon frontiers. Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced that natural gas has been encountered in the Sri Vijaya Puram-3 exploratory well in the Andaman Sea. The well is located around 15 km off the east coast of the Andaman Islands at a water depth of 900 feet. According to the minister, initial production testing established the presence of gas through continuous flaring, while gas samples have been sent for laboratory analysis to determine their composition and origin. Congratulations @OilIndiaLimited!An ocean of energy opportunities reinforced in the Andaman Sea!Very happy to report the presence of natural gas in Sri Vijayapuram-3 an exploratory well drilled by Oil India Ltd.
15 km off the east coast of the Andaman Islands at a water… pic.twitter.com/j6QvWqZkF Hardeep Singh Puri (@HardeepSPuri) June 5, 2026 The latest find marks the second confirmed hydrocarbon discovery within OIL’s ongoing exploration campaign in the Andaman basin. The company has now reported the presence of hydrocarbons in two out of the three exploratory wells drilled under its current programme. Puri described the discovery as another milestone under the government’s “Samudra Manthan" initiative, which seeks to accelerate deepwater and ultra-deepwater exploration in India’s offshore basins. Several more exploration wells are planned in the Andaman region by the end of 2025 as India intensifies efforts to reduce dependence on imported oil and gas. The discovery follows OIL’s earlier Sri Vijaya Puram-2 gas find, announced in 2025, where testing confirmed the presence of natural gas with approximately 87% methane content. That discovery was widely viewed as proof that the Andaman basin contains an active petroleum system similar to hydrocarbon-rich regions stretching from Myanmar to Indonesia. Why The Andaman Basin Matters The Andaman-Nicobar basin is increasingly being viewed as India’s most promising frontier exploration zone.
Geologically, it lies within the Bengal-Arakan petroleum system, the same hydrocarbon belt that has produced major oil and gas discoveries in neighbouring countries such as Myanmar, Thailand and Indonesia. The government has repeatedly described the basin as a key component of India’s future energy strategy, with exploration efforts intensifying over the past few years. Industry experts believe the region could hold significant untapped reserves, although the exact size remains unknown because exploration is still at an early stage. Commercial viability can only be determined after additional drilling, reservoir studies and appraisal programmes. Adding to the excitement, Puri had earlier suggested that the Andaman Sea could potentially contain a Guyana-style oil discovery. Preliminary assessments and geological studies have indicated the possibility of massive offshore reserves, with some estimates suggesting resources running into hundreds of billions of litres of crude oil if future drilling confirms the basin’s full potential. The minister had earlier cited estimates indicating that the Andaman offshore region could hold as much as 184 billion litres of oil equivalent resources, though these figures remain prospective and have yet to be proven through commercial discoveries.
Since 2015, India has reported 172 hydrocarbon discoveries, including 62 offshore finds, with the Andaman basin emerging as one of the country’s most closely watched exploration regions. While commercial production remains some distance away, the latest discovery reinforces growing confidence that the Andaman Sea could play a significant role in India’s long-term energy security and offshore exploration ambitions. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit Location: Andaman & Nicobar Islands, India, India First Published: June 05, 2026, 18:43 IST News india Oil India Finds Natural Gas In Andaman Basin Again, Boosting Hopes Of Major Offshore Energy Discovery Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy Loading comments...
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