Oil India Limited (OIL) has discovered natural gas in the Matsyapuri formation in the shallow offshore waters of the Krishna-Godavari (KG) Basin. The discovery was made in the KG-DSF/GSKW/2018 block, where the company is operating as the sole operator under the Discovered Small Field (DSF) programme.
OIL, a Maharatna Central Public Sector Enterprise (CPSE), has operations across the oil and gas value chain. The latest discovery marks progress in its exploration and appraisal activities in the KG Basin, particularly in the Matsyapuri formation, which had not previously been appraised.
The discovery was made through the Godavari-1 well, drilled as an appraisal well in the shallow offshore block. Hydrocarbons were identified in one of the selected pay zones at a depth of 2,024 to 2,027 metres. Production testing of the zone began on October 16, 2026. The well flowed natural gas to the surface at a rate of approximately 100,000 standard cubic metres per day (SCMD). During continuous testing, the maximum flow rate reached 200,000 SCMD.
The testing also recorded condensate production of approximately 170 barrels per day. The condensate had an API gravity of 55.8 degrees at 60°F. Water was also produced during testing, while the wellhead pressure was recorded at 1,815 psi. The test results provide information on the hydrocarbon-bearing zone and its production characteristics. OIL is now preparing to test the next higher zone in the well to assess its hydrocarbon potential.
The company has not provided further details on the estimated reserves, commercial viability or development timeline for the discovery. Additional appraisal and testing activities will help establish the potential of the identified zones. The discovery adds to OIL’s exploration activities in the Krishna-Godavari Basin, an important offshore region for oil and gas exploration in India. The company continues to assess hydrocarbon prospects through drilling, appraisal and testing operations. Further results from the upcoming tests are expected to provide additional information on the well’s potential and the characteristics of the higher zone.
Headquartered in Duliajan, Assam, Oil India has diversified its portfolio beyond conventional oil and gas into renewable energy, city gas distribution, hydrogen, geothermal energy, and other emerging clean-energy sectors. With a strong focus on technological innovation, operational excellence, sustainability, and responsible resource development, the company continues to contribute significantly to India’s growing energy needs while supporting the nation’s transition towards a more secure, sustainable, and low-carbon energy future.
