Oil India shares soar over 3% on discovering natural gas in Andaman Shallow Offshore Block

As of 11:54 am, the stock stood at ₹416.80, up 1.60%.

This follows the company's discovery of natural gas reserves off the Andaman Islands, marking the first reported occurrence of hydrocarbon during the ongoing exploration campaign in the Andaman Shallow Offshore Block.

Oil India reported the occurrence of natural gas in its second exploratory well, Vijayapuram-2, which was drilled in the offshore Andaman block AN-OSHP-2018/1, the firm said in a regulatory filing dated Friday.

The Maharatna firm had won the block under the Open Acreage Licensing Policy (OALP).

“The preliminary analysis of gas samples, collected during intermittent inflow of gas as part of initial production testing, has confirmed the presence of natural gas. Further gas isotope studies are being undertaken so as to understand the genesis of the gas,” the statement added.

The firm further stated that, according to the preliminary assessment, it could be a leading indicator of the presence of a source, migration pathway, or accumulation of hydrocarbons, which will help in future Exploration and Drilling Strategy.

It will also undertake additional testing of higher-up prospects to further evaluate the reported occurrence of gas, the filing said.

Oil India stock performance

The shares surged 3.02% over the week and 6.85% over the month. It declined 4.74% over three months but gained 8.04% over a period of six months.

On a year-to-date basis, the scrip lost 3.86%.

While the stock touched a year’s low of ₹325 on April 7, 2025, it reached a 52-week high of ₹595 per equity share on September 27, 2024.

Oil India has a total market capitalisation of ₹67,788.88 crore, as of September 29, 2025, according to data on the NSE.

OIL Q1 results

The firm reported a 115% year-on-year (YoY) surge in its net profit to ₹5,689 crore in the first quarter of FY26, compared to ₹2,643 crore in the same period last year.

Its revenue from operations advanced marginally to ₹2.19 lakh crore during the quarter under review, as against ₹2.16 lakh crore in Q1FY25.