Hormuz Crisis Pushes India to Tap Thar Desert Oil: Can Rajasthan Reduce Import Dependence?

As disruptions in the Strait of Hormuz continue to unsettle global energy markets, India is increasingly turning inward to secure its oil supply. In Rajasthan’s Thar desert, fields such as Baghewala, Dandewala, and Bakhritibba (operated by Oil India Limited) are emerging as important domestic energy sources.

With geopolitical tensions impacting crude supply routes, these onshore assets are offering a much-needed cushion, highlighting India’s efforts to strengthen energy resilience.

Oil India Ramps Up Production with Technology Push

Oil India has significantly scaled up output from its Rajasthan operations. Crude production from the Jodhpur sandstone formation reached a record 1,202 barrels per day, marking a sharp 70% increase from last year. Annual production rose to 43,773 metric tonnes in FY26, compared to 32,787 metric tonnes in FY25.

This growth has been supported by advanced recovery techniques such as Cyclic Steam Stimulation (CSS), along with innovations like diluent injection and artificial lift systems. The company also expanded operations, completing CSS in 19 wells and drilling 13 new wells during the year.

Given the high viscosity of crude in the region, these technological interventions have been crucial in enabling large-scale extraction.

Integrated Infrastructure Strengthens Supply Chain

The crude extracted from Baghewala is transported to ONGC’s facilities in Gujarat and then refined at Indian Oil Corporation’s Koyali refinery. Alongside oil, OIL has also developed gas assets in Tanot, Dandewala, and Bakhritibba.

The Dandewala Gas Processing Complex plays a central role, processing and supplying natural gas to GAIL India, which further distributes it to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). A dedicated 65 km pipeline ensures seamless delivery, reflecting a well-integrated domestic energy ecosystem.

Read more: Delhi Govt Bans Direct LPG Sales from Godowns; Violators Face Penalties.

Conclusion

India’s push to boost production from Rajasthan’s oil and gas fields highlights a strategic shift toward reducing import dependence. While domestic output may not fully offset global supply risks, it strengthens the country’s energy security and provides a critical buffer during geopolitical disruptions.

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