Oil India (OIL) has reported the first occurrence of natural gas in its shallow-water offshore block AN-OSHP-2018/1 in the Andaman basin, marking a significant milestone in India’s hydrocarbon exploration. 

The find was made in its second exploratory well, Vijayapuram-2, under the third Open Acreage Licensing Policy (OALP) round. OIL, which also holds another block (AN-OSHP-2018/2), said preliminary assessments suggest the occurrence could indicate the presence of a source rock, migration pathway, or hydrocarbon accumulation, guiding future drilling strategies. Additional testing is underway in higher prospects to evaluate resource potential.

This is the first hydrocarbon occurrence reported by OIL from the Andaman blocks, though no crude oil has yet been found. The Directorate General of Hydrocarbons (DGH) has classified the Andaman as a Category II basin, reflecting sub-commercial discoveries with potential for future commercial production.