Oil India shares rise 3% on natural gas discovery in Andaman

Oil India shares rose over 3 per cent after it discovered natural gas at its Vijayapuram-2 exploratory well in the Andaman Shallow Offshore Block

Shares of Oil India rose over 3 per cent after the company said it discovered natural gas at its Vijayapuram-2 exploratory well in the Andaman Shallow Offshore Block, with initial tests confirming gas inflows.

 

The Maharatna company's stock rose as much as 3.11 per cent during the day to ₹423 per share, the biggest intraday rise since September 25 this year. The stock pared gains to trade 1.71 per cent higher at ₹417.2 apiece, compared to a 0.33 per cent advance in Nifty 50 as of 9:41 AM. 

 

Shares of the company trade at the highest level since August 13 this year and currently trade at 4 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 2.5 per cent this year, compared to a 4.5 per cent advance in the benchmark Nifty 50. Oil India has a total market capitalisation of ₹68,236.20 crore. 

 

Oil India reports natural gas discovery 

The company, in an exchange filing on Friday, reported the occurrence of natural gas in its second exploratory well, Vijayapuram-2, drilled in the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).

 

Preliminary analysis of gas samples collected during intermittent inflows as part of initial production testing has confirmed the presence of natural gas, the company said. Further gas isotope studies are underway to understand the genesis of the gas. 

 

According to the company, this discovery could indicate the presence of a source, migration pathway, or accumulation of hydrocarbons, which may guide future exploration and drilling strategy. It is also conducting additional testing of higher-up prospects to further evaluate the reported occurrence of gas.

 

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.

Oil India targets ₹1.3 trillion capex

The company is targeting a capital expenditure of ₹1.3 trillion by 2030 amid a major plan to take up deep-water exploration projects, Chairman and Managing Director Ranjit Rath said earlier this month, after the company’s annual general meeting (AGM).

 

The company also plans to scale up investments in green energy areas, including green hydrogen, biofuels and compressed biogas (CBG). It is planning an investment of ₹17,000 crore in the current financial year.

Oil India Q1 results

In the June 2025 quarter (Q1FY26), Oil India reported consolidated revenue from operations of ₹8,749.94 crore, down 6.4 per cent from ₹9,350.89 crore in the year-ago period. The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at ₹2,808.6 crore, down 12.7 per cent compared to ₹3,218.2 crore in Q1FY25. Net profit remained almost flat at ₹1,896.4 crore against ₹1,885.8 crore in the year-ago period.