Oil India Limited (OIL), a Maharatna Central Public Sector Enterprise, has reported a natural gas discovery in the Matsyapuri formation of the Krishna-Godavari (KG) Basin off India’s east coast.
The discovery was made in the shallow offshore block KG-DSF/GSKW/2018, awarded to the company as the sole operator under the Discovered Small Field framework.
The appraisal well, Godavari-1, encountered hydrocarbons in a selected pay zone at a depth of 2,024–2,027 metres. According to the company, the Matsyapuri formation had not previously been appraised.
Gas Flow Reaches 2 Lakh SCMD
Production testing of the zone began on October 16, 2026. The well initially flowed natural gas at approximately 1 lakh standard cubic metres per day, with a maximum flow rate of 2 lakh standard cubic metres per day (SCMD) recorded during continuous testing.
Oil India also reported condensate flow of around 170 barrels per day, with an API gravity of 55.8 at 60°F. The test recorded wellhead pressure of 1,815 psi, alongside water production.
Further Testing Planned
Oil India is preparing to test the next higher zone in the well. Further testing and technical evaluation will help establish a clearer understanding of the discovery’s resource potential and development prospects.
The discovery marks a new exploration milestone for Oil India in the Krishna-Godavari Basin. Additional appraisal will be important in determining its commercial significance and potential contribution to India’s domestic oil and gas production.

