Oil India Discovers Natural Gas in Krishna-Godavari Basin Block

State-owned Oil India Ltd. (OIL) announced on Friday that it has made a natural gas discovery in a shallow-water block in the Krishna-Godavari Basin off India’s east coast. The block was won by the firm in recent Discovered Small Field (DSF) bid rounds.

The discovery took place in the previously unappraised Matsyapuri formation. According to the company's statement, testing of a hydrocarbon-bearing zone at a depth of 2,024 to 2,027 metres began on October 16, 2026, in the Godavari-1 appraisal well located within the KG-DSF/GSKW/2018 shallow-water offshore block.

During continuous testing, the well flowed gas at approximately 100,000 Standard Cubic Metres Per Day (SCMD), with a maximum peak test flow rate of 200,000 SCMD. Additionally, the company reported a condensate output of about 170 barrels per day. OIL noted that preparations are currently underway to test the next higher zone, though the firm has not yet provided an assessment of the total potential resources the discovery may hold.

This find adds to ongoing exploration activity in the Krishna-Godavari Basin, which remains one of India's key offshore hydrocarbon-producing regions. Deepwater and shallow-water projects in the area have played a central role in efforts to expand domestic production.

The discovery comes at a time when India continues to rely on imports to meet a substantial portion of its natural gas requirements. Domestic production additions are closely watched as the Indian government pursues a target to raise natural gas' share of the country's energy mix to 15 per cent by 2030, up from approximately 6 per cent currently. The development of domestic resources forms an integral part of this broader energy strategy.

"Discoveries of domestic natural resources by state-owned enterprises like Oil India are significant for addressing the country's import reliance. As the government works toward increasing the share of natural gas in India's energy mix to 15 percent by 2030, successful appraisal wells and steady exploratory progress in key regions like the Krishna-Godavari Basin provide essential support for long-term domestic energy security and supply growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes