NEW DELHI: State-run Oil India Limited (OIL) Friday said it has reported the presence of natural gas in its third exploratory well in the Andaman shallow offshore block, further indicating hydrocarbon potential in the region.In a regulatory filing to stock exchanges, the company said natural gas was encountered in the exploratory well Vijayapuram-3, drilled 15 km off the east coast of the Andaman Islands at a water depth of 355 metres in an offshore block under the Open Acreage Licensing Policy (OALP).“Initial production testing of the well at the depth of 1900 plus metres in the Eocene formation has established the presence of natural gas through continuous flaring. Post perforation, immediate pressure build up was observed and well started to produce,” it said. It added that gas sampling is being undertaken to assess its composition and calorific value and to carry out isotope studies to understand its genesis.With this, OIL has established the presence of hydrocarbons in two of the three wells in the Andaman offshore block. The first indication of natural gas was reported from its second exploratory well, Vijayapuram-2, in Sept 2025.