Oil India Discovers Natural Gas In Offshore KG Basin; Records 200,000 SCMD Flow

State-owned Oil India Ltd (OIL) has discovered natural gas in a shallow-water offshore block in the Krishna-Godavari (KG) Basin off India’s east coast.

The discovery recorded a peak test flow of 200,000 Standard Cubic Metres Per Day (SCMD), the company said in a statement.

OIL discovered the previously unappraised Matsyapuri formation through the Godavari-1 appraisal well in the KG-DSF/GSKW/2018 block.

The company secured the block under recent Discovered Small Field (DSF) bidding rounds.

The company began testing a hydrocarbon-bearing zone at a depth of 2,024-2,027 metres on October 16, 2026.

The well flowed gas at approximately 100,000 SCMD, while continuous testing recorded a maximum rate of 200,000 SCMD.

OIL further reported condensate production of around 170 barrels per day from the well.

The discovery marks progress in the company’s exploration activities in the KG Basin, a key offshore hydrocarbon region along India’s eastern coastline.

OIL said it was preparing to test the next higher zone to assess its potential.

The company did not disclose an estimate of the gas resources that the discovery could contain.

The results of further testing will help establish the formation’s production potential and provide additional information about the discovery.

The latest find adds to OIL’s exploration efforts in offshore blocks acquired through the government’s DSF bidding programme, which aims to develop smaller discovered oil and gas fields.

Further evaluation will be necessary before the company can determine the commercial potential of the discovery and its prospects for future development.

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