Oil Production At Thar Desert Increased By 70% Under Indian Oil


Radhika Kajarekar

Radhika Kajarekar

Apr 08, 2026


Oil India Ltd has sharply increased crude output from the Thar desert in Rajasthan, reaching a new high of 1,202 barrels per day from the Jodhpur sandstone zone during a time of global oil uncertainty.

In comparison to last year’s 705 barrels per day, this reflects an approximate 70% rise, showing a strong push toward improving domestic production and energy independence.

Oil India Boosts Thar Desert Output by 70%, Hits Record Production Amid Global Uncertainty

Meanwhile, crude extracted from the Baghewala field in Jaisalmer is transported via tankers to Oil and Natural Gas Corporation facilities in Mehsana, Gujarat, and then moved through pipelines to the Koyali refinery operated by Indian Oil Corporation Ltd.

Over the financial year 2025–26, total crude production from Rajasthan reached 43,773 metric tonnes, rising notably from 32,787 metric tonnes in the previous year.

This growth has largely been driven by improved operational efficiency and the adoption of modern extraction technologies.

In particular, the use of Cyclic Steam Stimulation (CSS), a thermal recovery technique suited for thick crude, has played a major role in boosting output.

As one official stated, “This is a significant achievement, especially considering the challenging geological conditions of the Thar region. It underlines the potential of unconventional resources in contributing to India’s energy needs.”

The Baghewala field, located in the Bikaner-Nagaur sub-basin, is one of India’s limited onshore heavy oil reserves.

Oil India Expands CSS Operations to 19 Wells, Drills 13 New Sites to Boost Output

Over time, CSS operations have been expanded to 19 wells, marking a 72% increase, while 13 new wells were drilled compared to nine earlier.

Additionally, new technologies such as fishbone drilling, barefoot completion, electric downhole heaters, hydraulic sucker rod pumps, and high-temperature wellheads have been introduced to improve efficiency.

Due to the thick nature of the crude, traditional extraction methods were ineffective, leading to the adoption of alternatives like diluent injection and artificial lift systems.

Oil extraction at Baghewala began in 2017, although the field was originally discovered in 1991 and spans over 200.26 square kilometres.

At present, the field contains 52 wells, of which 33 are actively producing oil.

Notably, CSS technology, first tested in 2018, has significantly transformed production capabilities and set new standards in India’s thermal recovery methods.

Ultimately, this progress is expected to reduce reliance on imported crude and strengthen India’s long-term energy security.

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Radhika Kajarekar
Radhika Kajarekar
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