Oil India Limited (OIL), the Maharatna PSU under the Ministry of Petroleum & Natural Gas, has confirmed the occurrence of natural gas in its second exploratory well, Vijayapuram-2, located in the Andaman Shallow Offshore Block under the Open Acreage Licensing Policy (OALP).
- Preliminary Findings: Initial production testing revealed intermittent inflows of natural gas. Isotope studies are underway to assess the gas’s origin, migration pathways, and potential as an indicator of hydrocarbon accumulation.
- Significance: This marks OIL’s first confirmed hydrocarbon discovery in its ongoing exploration campaign in the Andaman offshore region, which covers an area of 10,000 sq km under active exploration.
Exploration Progress and Testing
- OIL is conducting additional testing on higher prospects to evaluate the scale of the discovery.
- Across India, the company has drilled 57 wells in Assam, Rajasthan, Mahanadi, and Andaman, reaching depths of up to 5,900 meters in Assam and 4,200 meters in the Andamans.
Capex and Growth Plans
- To support its exploration and production expansion, OIL has doubled its capital expenditure plan for FY26 to ₹17,000 crore from ₹8,500 crore in FY25.
- The company targets a cumulative capex of ₹1.3 lakh crore by 2030 and aims to achieve annual revenues of ₹1 lakh crore by the end of the decade.
Production Milestones
- In FY25, OIL recorded 6.71 million tonnes of oil equivalent (MMTOE) in total oil and gas production.
- Natural gas output reached an all-time high of 3,252 million standard cubic meters (MMSCM) during the same period.
Summary
- Discovery: Natural gas found in Vijayapuram-2 well, Andaman Shallow Offshore Block.
- Ongoing Studies: Isotope analysis to assess origin, migration, and hydrocarbon potential.
- Exploration Area: 10,000 sq km in Andaman region under active exploration.
- Capex: ₹17,000 crore planned for FY26; cumulative ₹1.3 lakh crore by 2030.
- Production: Record 6.71 MMTOE total output, 3,252 MMSCM natural gas in FY25.
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