Key Points
- Oil India Limited confirmed the first-ever natural gas occurrence in the Andaman basin at Sri Vijayapuram 2 well, marking a historic milestone for India’s energy sector
- Gas samples revealed 87% methane content, making this discovery commercially viable for future production and LNG exports
- The well is located 17 km off Andaman’s east coast at 295m water depth, drilled to a target depth of 2,650 meters
- This discovery aligns with PM Modi’s newly announced National Deep Water Exploration Mission termed ‘Samudra Manthan’ for offshore energy exploration
New Delhi: India achieved a groundbreaking milestone in offshore energy exploration as Union Petroleum Minister Hardeep Singh Puri announced on September 26, 2025, the first confirmed natural gas occurrence in the Andaman Sea basin. This discovery at the Sri Vijayapuram 2 well represents a watershed moment for India’s quest for energy self-reliance, validating decades of geological surveys that suggested the region’s hydrocarbon potential.
The exploratory well, operated by state-run Oil India Limited (OIL), is strategically positioned 9.20 nautical miles (17 kilometers) from the eastern coastline of the Andaman Islands. Located at a water depth of 295 meters, the well was successfully drilled to its target depth of 2,650 meters, establishing the technical feasibility of deepwater operations in this challenging maritime environment.
Technical Specifications and Quality Assessment
Initial production testing conducted between depths of 2,212 to 2,250 meters confirmed the presence of natural gas with intermittent flaring, indicating active hydrocarbon seepage. Gas samples were carefully transported by ship to the Kakinada facility for comprehensive laboratory analysis, where testing revealed an impressive 87% methane composition. This high methane content significantly enhances the commercial viability of the discovery, as methane represents the primary component sought in natural gas production for both domestic consumption and potential liquefied natural gas (LNG) exports.
An ocean of energy opportunities opens up in the Andaman Sea!
— Hardeep Singh Puri (@HardeepSPuri) September 26, 2025
Very happy to report the occurrence of natural gas in Sri Vijayapuram 2 well at a distance of 9.20 NM (17 km) from the shoreline on the east coast of the Andaman Islands at a water depth of 295 meters and target depth… pic.twitter.com/4VDeGtt8bt
According to Minister Puri’s statement, this marks the first time OIL has reported hydrocarbon occurrence from its Andaman blocks, despite holding two shallow-water exploration licenses (AN-OSHP-2018/1 and AN-OSHP-2018/2) acquired during the third Open Acreage Licensing Policy (OALP) round. The company is currently conducting additional testing of higher-level prospects to further evaluate the full extent of gas reserves in the region.
Strategic Alignment with National Energy Mission
This discovery directly supports Prime Minister Narendra Modi’s National Deep Water Exploration Mission, announced during his Independence Day address as “Samudra Manthan”. The mission aims to accelerate offshore hydrocarbon exploration through systematic deepwater drilling campaigns across India’s maritime basins. Minister Puri emphasized that this natural gas occurrence will facilitate collaboration with global deepwater exploration leaders including Petrobras, BP India, Shell, and ExxonMobil.
The Andaman basin’s geological characteristics align with successful discoveries in neighboring regions, from Myanmar in the north to Indonesia in the south, suggesting significant untapped potential along this hydrocarbon belt. Industry experts have expressed optimism about the possibility of a “Guyana-scale discovery” in Andaman waters, which could fundamentally transform India’s oil and gas landscape.
Economic Impact and Future Prospects
India’s heavy dependence on energy imports makes this discovery particularly significant for national energy security. The country imported approximately $14.98 billion worth of natural gas, totaling 27.8 million metric tonnes in 2024, primarily as LNG from Qatar, the United States, and the United Arab Emirates. A commercially viable gas field in the Andaman Sea could substantially reduce this import dependency while creating new revenue streams through potential exports.
The discovery will undergo extensive evaluation over the coming months to determine the size of the gas pool and establish commercial viability parameters. According to industry protocols, an “occurrence” represents physical evidence of hydrocarbons during exploration, while a formal “discovery” requires quantification of reserves and assessment of extraction economics. OIL is currently undertaking additional testing to transition from occurrence status to a confirmed discovery, which would trigger commercial development planning and infrastructure investment.
This breakthrough positions the Andaman and Nicobar Islands as a potential hub for India’s emerging offshore energy industry, opening opportunities for regional economic development and strategic energy partnerships in the Indo-Pacific region.
