Oil India Limited (OIL), a Maharatna central public sector enterprise, has announced a natural gas discovery in the shallow offshore Block KG-DSF/GSKW/2018 in the Krishna-Godavari Basin. The finding was made in a formation that had not previously been appraised, adding a new data point to the company's activity in the basin.

Discovery in the Matsyapuri Formation

The gas was found in the Matsyapuri formation through the appraisal well Godavari-1. Oil India drilled the well as the sole operator of the block, which falls under the Discovered Small Field category. The company reported that hydrocarbon presence was established in the depth interval of 2024 to 2027 metres.

The Matsyapuri formation had been unappraised before this well, making the result the first appraisal outcome for that zone within the block, according to the company's announcement.

Production Testing Results

Production testing of the identified zone began on 16 October 2026. The test resulted in a sustained natural gas flow of approximately 1 lakh standard cubic metres per day (SCUMD). The maximum flow rate recorded during testing reached 2 lakh SCUMD.

Alongside the gas, the well produced condensate at a rate of about 170 barrels of oil per day. The condensate has an API gravity of 55.8 at 60 degrees Fahrenheit. Water was also produced during the test. Well-head pressure during testing was recorded at 1815 psi.

Next Steps at Godavari-1

Oil India stated that preparations are currently underway to test the next higher zone in the well. The company did not provide further details on the timeline or expected scope of that additional testing in its announcement.

Regulatory Disclosure

The company made the announcement on 23 October 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Regulation 30 governs the disclosure of events and information that listed entities are required to share with stock exchanges.

Block Background

Block KG-DSF/GSKW/2018 is located in shallow offshore waters of the Krishna-Godavari Basin and is designated as a Discovered Small Field block. Oil India holds the role of sole operator for the block and drilled the Godavari-1 appraisal well itself. The disclosure did not include information on reserve estimates, commercial viability, or development plans for the discovery.

The testing figures released by the company cover gas flow, condensate output, condensate quality, and well-head pressure, but the announcement did not specify further technical parameters of the reservoir.

Corporate Context

Oil India carries Maharatna status among central public sector enterprises. The discovery announcement was published alongside a series of other public sector undertaking updates on 23 October 2026, though the company's disclosure concerned only the Godavari-1 results and the planned testing of the next higher zone.

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