Oil India Limited (OIL), a Maharatna Central Public Sector Enterprise (CPSE), has announced a significant discovery of natural gas in the Krishna-Godavari Basin. This discovery was made in the shallow offshore block KG-DSF/GSKW/2018, specifically in the previously unappraised “Matsyapuri” formation. The company, which operates across the entire oil and gas value chain, has been awarded this block as the sole operator.
The appraisal well, named Godavari-1, was drilled in the Discovered Small Field Block of the KG Basin. The presence of hydrocarbons was detected at a depth range of 2024 to 2027 meters. Production testing commenced on 16th October 2026, revealing a flow of natural gas to the surface at a rate of approximately 1 lakh standard cubic meters per day (SCUMD). The maximum flow rate achieved was 2 lakh SCUMD during continuous testing. Additionally, the composition included condensate at a rate of about 170 barrels of oil per day (bopd), with an API gravity of 55.8 at 60°F, and water, under a wellhead pressure of 1815 psi.
This discovery marks a significant milestone for Oil India Limited, as it continues its exploration and production activities in the region. The company is currently preparing to test the next higher zone, indicating potential for further hydrocarbon discoveries.
Industry analysts view this development as a positive step for OIL, enhancing its resource base and contributing to India’s energy security. The Krishna-Godavari Basin is known for its rich hydrocarbon reserves, and this discovery underscores the basin’s potential. As OIL advances its exploration efforts, the market will be keenly observing the outcomes of further testing and the potential impact on the company’s production capabilities.
