Oil India reports first natural gas occurrence in Andaman offshore block

Oil India has reported the first natural gas occurrence from its Andaman offshore blocks at exploratory well Vijayapuram-2, marking a step forward in India's hydrocarbon exploration

State-run Oil India Ltd (OIL) reported the first occurrence of natural gas in one of its shallow-water offshore blocks in the Andaman basin, the company said on Friday.

 

The occurrence was reported in its second exploratory well, Vijayapuram-2, drilled in the offshore Andaman block AN-OSHP-2018/1. OIL holds two shallow-water blocks, AN-OSHP-2018/1 and AN-OSHP-2018/2, in the Andamans, won in the third Open Acreage Licensing Policy (OALP) round.

 

“As per preliminary assessment, this could be a leading indicator of the presence of a source, migration pathway, or accumulation of hydrocarbon, which will help in future exploration and drilling strategy,” OIL said in a statement. The company is undertaking additional testing of higher-up prospects to further evaluate the reported occurrence of gas.

 

 

This is the first time OIL has reported hydrocarbon occurrence from its Andaman blocks. The company has yet to report crude oil occurrence.

 

An occurrence is physical evidence of hydrocarbons during oil and gas exploration, while a discovery helps establish the quantum of hydrocarbons found and the investment required for evacuation.

 

Oil Minister Hardeep Singh Puri has expressed confidence in India making a “Guyana-sized” discovery in the Andaman waters, which could alter the country’s oil and gas landscape.

 

India’s upstream companies, including ONGC and Oil India, are carrying out exploration activities in their respective Andaman blocks with the aim of making a major discovery. The companies have commenced drilling wells and await a breakthrough in the area.

 

Andaman is classified as a Category II basin, implying it has a sub-commercial discovery in place and potential for commercial production, according to the Directorate General of Hydrocarbons (DGH).