In the Andaman shallow offshore block, Oil India Limited (OIL) announced on Friday that it has discovered natural gas in its third exploration well. This is the second well in the block to confirm the existence of hydrocarbons.
The state-owned Maharatna company stated in a regulatory filing to the BSE and NSE that the well, Vijayapuram-3 (Loc. OAEB), was drilled in the Offshore Andaman Block AN-OSHP-2018/1 at a water depth of 355 meters about 15 kilometres off the east coast of the Andaman Islands under the Open Acreage Licensing Policy (OALP).
According to OIL, continual flaring during the well's initial production testing revealed the presence of natural gas at a depth of more than 1,900 meters in the Eocene formation. Immediately after the perforation, pressure started to build up and the well started to produce.

According to the corporation, gas sampling is being done to determine the gas's composition and calorific value as well as to conduct isotope analyses to determine its origin.
On September 26, 2025, OIL reported the discovery of natural gas in Vijayapuram-2 (Loc. OAEA), the block's second exploratory well. Two of the three exploration wells that have been drilled in the block thus far have verified the presence of hydrocarbons.
The most recent discovery, according to the business, is "a leading indicator of the presence of source or migration pathway or accumulation of hydrocarbon in the current prospect," which will aid in the planning of its upcoming exploration program in the region.

In response to the September 2025 discovery, OIL has already started an appraisal procedure that involves refining the 2D seismic data that is now accessible and acquiring an additional 600 sq km of 3D seismic data, which the firm claims is finished. The collected and old 3D seismic data are still being processed. Drilling for appraisal wells was scheduled after the seismic data had been processed and interpreted, according to OIL.

Under the Ministry of Petroleum and Natural Gas, OIL is a key public sector company in Maharatna.