Oil India Discovers Natural Gas in Krishna-Godavari Basin, Records Peak Flow of 200,000 SCMD – Indian PSU

Oil India Limited (OIL), a Maharatna public sector undertaking, has discovered natural gas in the previously unappraised Matsyapuri formation in the shallow offshore waters of the Krishna-Godavari Basin, recording a peak test flow of 200,000 standard cubic metres per day (SCMD).

The discovery was made through the Godavari-1 appraisal well in the KG-DSF/GSKW/2018 offshore block, awarded to the company under the government’s Discovered Small Field (DSF) bidding rounds. Oil India is the sole operator of the block.

According to the company, testing of the hydrocarbon-bearing zone began on October 16, 2026, at a depth interval of 2,024 to 2,027 metres. The well recorded a gas flow of approximately 100,000 SCMD, with the peak flow reaching 200,000 SCMD during continuous testing.

The well also produced condensate at a rate of approximately 170 barrels per day, indicating the presence of liquid hydrocarbons alongside natural gas.

Further Testing Underway

Oil India is preparing to test the next higher zone in the Godavari-1 well to assess its hydrocarbon potential further. The company has not yet disclosed estimates of recoverable gas reserves, the commercial viability of the discovery or a timeline for potential development.

The results of further testing and subsequent evaluation will be important in determining the resource potential of the discovery and its prospects for commercial production.

Boost to Domestic Gas Exploration

The discovery adds to exploration activity in the Krishna-Godavari Basin, one of India’s established hydrocarbon-producing regions along the eastern coast. The basin has attracted sustained exploration by public and private sector energy companies because of its oil and natural gas potential.

The find comes amid India’s efforts to expand domestic hydrocarbon production and strengthen energy security by reducing dependence on imported fuels. Natural gas is also expected to play an important role in the country’s transition towards a greater share of gas in its energy mix.

While the reported test flow is an encouraging exploration result, the discovery’s ultimate contribution to domestic gas supplies will depend on further appraisal, reserve assessment and the feasibility of commercial development.

For Oil India, the find marks another step in its efforts to expand exploration and development activities beyond its traditional producing areas and strengthen its upstream portfolio.