Record output from Thar: Oil India scales up production at Baghewala field

Amid heightened geopolitical tensions and uncertainty in global oil markets, Oil India Ltd has ramped up crude production from Rajasthan’s Thar desert, achieving a record output of 1,202 barrels per day from the Jodhpur sandstone formation, officials said.

The state-run company increased production by around 70 per cent compared to last year’s 705 barrels per day, marking a milestone in efforts to boost domestic output and strengthen energy security.

Officials said crude oil produced in the Baghewala field in Jaisalmer is transported by tankers to Oil and Natural Gas Corporation (ONGC) facilities in Mehsana, Gujarat, from where it is sent via pipeline to the Koyali refinery operated by Indian Oil Corporation Ltd (IOCL).

In the financial year 2025-26, Oil India’s Rajasthan field recorded an annual production of 43,773 metric tonnes of crude oil, up from 32,787 metric tonnes in the previous year.

Company officials said the growth was driven by technological advancements and efficient operations, particularly the deployment of advanced recovery techniques including Cyclic Steam Stimulation (CSS), a thermal enhanced oil recovery method used for extracting 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 said.

The Baghewala oil field, located in the Bikaner-Nagaur sub-basin of the Rajasthan basin, is among the few onshore heavy oil fields in India.

Oil India completed CSS operations in 19 wells, around 72 per cent higher than last year, and drilled 13 new wells during the year, up from nine earlier.

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

Officials said the high viscosity of crude in the region made conventional extraction methods unviable, prompting the adoption of approaches such as diluent injection and artificial lift systems.

Oil India has been producing heavy crude from the Baghewala field since 2017. The field, discovered in 1991 and spread over 200.26 square kilometres, currently has 52 wells, of which 33 are operational.

The implementation of CSS technology, first piloted in 2018, has enabled large-scale extraction and set benchmarks in thermal enhanced oil recovery in India.

Officials said the development will contribute to reducing India’s dependence on imported crude and strengthening long-term energy resilience.

(With inputs from agencies)