Hormuz blocked, India turns to Thar desert: Oil India ramps up crude output from Rajasthan field

As disruptions in the Strait of Hormuz affect global oil flows, Oil India Ltd has increased crude production from Rajasthan’s Thar desert, reaching a record 1,202 barrels per day from the Jodhpur sandstone formation, news agency PTI reported on Sunday.

The output marks a rise of around 70 per cent from last year’s 705 barrels per day, as the state-run company steps up domestic production amid supply uncertainty due to tensions in West Asia.

Oil India transports crude from the Baghewala field in Jaisalmer by tanker to Oil and Natural Gas Corporation facilities in Mehsana, Gujarat. From there, it sends the crude through a pipeline to the Koyali refinery operated by Indian Oil Corporation.

In the financial year 2025-26, Oil India produced 43,773 metric tonnes of crude from its Rajasthan field, up from 32,787 metric tonnes the previous year. Officials said the company achieved this increase by deploying enhanced recovery techniques such as Cyclic Steam Stimulation (CSS), a thermal method used to extract high-viscosity crude.

“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,” an official told the news agency.

The Baghewala field, located in the Bikaner-Nagaur sub-basin, is one of India’s few onshore heavy oil fields. Oil India completed CSS operations in 19 wells, around 72 per cent more than last year, and drilled 13 new wells, up from nine earlier.

The company also introduced technologies such as fishbone drilling and barefoot completion for the first time in India’s heavy oil reserves. It used electric downhole heaters, hydraulic sucker rod pumps and high-temperature thermal wellheads to improve production efficiency.

Because the crude in the region has high viscosity, conventional extraction methods did not work. Oil India adopted techniques such as diluent injection and artificial lift systems to maintain output. The company has produced heavy crude from the Baghewala field since 2017.

The field, discovered in 1991 and spread across 200.26 square kilometres, has 52 wells, of which 33 are operational. Oil India first piloted CSS technology in 2018, enabling large-scale extraction from the field.

The production increase comes as Iran blocks the Strait of Hormuz, disrupting oil supply to key Asian markets, including India.

The Ministry of Petroleum and Natural Gas said the government is taking steps to maintain supply. It said refineries are operating at high capacity, crude inventories remain adequate, and petrol pumps across the country are fully stocked.