Oil India Ltd Boosts Crude Production Amid Global Uncertainties

Oil India Ltd has achieved a remarkable increase in crude oil production from the Thar desert, reaching 1,202 barrels per day, a 70% rise from last year. This growth is attributed to advanced extraction techniques like Cyclic Steam Stimulation, which have enabled the company to tap into challenging reserves. With production figures reflecting a consistent upward trend, Oil India is poised to enhance India's energy security while reducing reliance on imported crude oil. The successful deployment of innovative technologies marks a significant milestone in the country's energy landscape.

By Narendra Chaudhary Apr 5, 2026, 13:29 IST

Significant Increase in Oil Production

Oil India Ltd, a state-owned enterprise, has made notable strides in crude oil production from the Thar desert in Rajasthan, amidst escalating global tensions linked to the US-Israel-Iran conflict and fluctuating oil prices. The company has achieved its highest output from the Jodhpur sandstone formation, reflecting India's commitment to enhancing its domestic energy resources. The production has surged to 1,202 barrels per day, a remarkable increase from last year's 705 barrels per day, marking an impressive rise of nearly 70%. Crude oil extracted from the Baghewala field in Jaisalmer is transported via tankers to facilities operated by Oil and Natural Gas Corporation (ONGC) in Mehsana, Gujarat, and subsequently delivered through pipelines to the Koyali refinery managed by Indian Oil Corporation Ltd (IOCL), ensuring an efficient supply chain.

The annual production statistics further illustrate this growth trend. In the financial year 2025-26, the output reached 43,773 metric tonnes, up from 32,787 metric tonnes the previous year, indicating consistent progress.

Technological Advancements Fueling Growth

Advanced Technology Driving Growth

A significant contributor to this success is the implementation of modern extraction methods. Oil India has effectively utilized Cyclic Steam Stimulation (CSS), a thermal enhanced oil recovery technique particularly suited for the high-viscosity crude prevalent in the area. An official remarked, "This is a remarkable achievement, especially given the challenging geological conditions of the Thar region. It highlights the potential of unconventional resources in meeting India's energy demands."

The company has conducted CSS operations in 19 wells, which is a 72% increase compared to the previous year, and has drilled 13 new wells, up from nine earlier. These initiatives have been crucial in achieving higher production levels.

Innovative Techniques for Challenging Reserves

Innovation Unlocks Difficult Reserves

The Baghewala oil field, situated in the Bikaner-Nagaur sub-basin, is among India's few onshore heavy oil reserves. Extracting crude from this area is particularly challenging due to its high viscosity, rendering conventional methods ineffective. To address these issues, Oil India has adopted advanced technologies such as fishbone drilling, barefoot completion, electric downhole heaters, and hydraulic sucker rod pumps. Furthermore, techniques like diluent injection and artificial lift systems have been introduced to enhance extraction efficiency.

Since the commencement of production in 2017, the field, which was discovered in 1991 and spans 200.26 square kilometers, has seen steady growth. Currently, 33 out of 52 wells are operational, contributing to the increasing output. The successful application of CSS technology, first trialed in 2018, has marked a pivotal moment, enabling large-scale extraction from previously challenging reserves and establishing new benchmarks for thermal enhanced oil recovery in India. This progress is anticipated to significantly reduce India's dependence on imported crude oil while bolstering long-term energy security.