State-owned Oil India Limited (OIL) has made a significant natural gas discovery in the Andaman shallow offshore block, marking a major milestone for India’s energy sector. Announced by Union Petroleum and Natural Gas Minister Hardeep Singh Puri, this breakthrough is part of the “Samudrabandhan” mission, which was declared by Prime Minister Narendra Modi during his 2025 Independence Day address to tap into the nation’s deep-sea energy potential.

The discovery was made at the Sri Vijaya Puram-3 exploratory well, located approximately 15 kilometers off the eastern coast of the Andaman Islands. Drilled under the government’s Open Acreage Licensing Policy (OALP) at a water depth of 355 meters, the well reached a depth of over 1,900 meters into the Eocene formation. High-pressure gas began flowing immediately upon perforation, and samples are currently undergoing scientific and isotope testing to determine their quality and origin.

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This is the second major discovery in the block, where hydrocarbons have been found in two out of the three exploratory wells drilled so far, including the previous success at the Vijaya Puram-2 well. Following the announcement, Oil India’s shares surged to 488.95 rupees, reflecting a year-to-date growth of over 14 percent. The Andaman basin, sharing geological similarities with hydrocarbon-rich regions of Southeast Asia, holds immense long-term potential as the Indian government plans to collaborate with global deep-sea exploration experts to reduce foreign energy imports.