Oil India Strikes Natural Gas in Shallow Offshore Basin

State explorer Oil India Limited (OIL) has found natural gas in a previously unexplored formation in the shallow Krishna-Godavari Basin, the Indian company said on Friday.

OIL has made the discovery at the Godavari-1 appraisal well in the Matsyapuri formation in the Krishna-Godavari Basin off India’s east coast, recording a peak test flow of 200,000 standard cubic meters per day (SCMD). The company, however, did not reveal an estimate of the potential reserves it had encountered.

OIL is now preparing to test the next zone in the basin for potential further drilling.

India looks to boost domestic oil and gas exploration as the Strait of Hormuz crisis crippled supply and hiked prices for oil and gas for the country, which is the world’s third-largest crude oil importer. The renewed rally in crude oil and LNG prices and the higher freight costs in September started pressuring, again, the marketing margins of India’s oil and gas sector, which has to contend with the fallout of the Iran war on global oil and LNG trade flows.

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