In a significant step towards enhancing domestic energy production, Oil India Limited (OIL), the Maharatna public sector undertaking, has successfully discovered a new gas well in the Dandewala Field in Rajasthan’s Jaisalmer Basin.
The company stated in an official statement that natural gas has begun flowing for the first time from the shallower Sanu Formation at a rate of nearly 25,000 standard cubic metres per day (SCMD).
The discovery well started producing gas after it was drilled to a depth of approximately 950 metres, and recorded an average inflow of 25,000 SCMD during testing.
The company stated that preliminary estimates, based on structural mapping, petrophysical evaluation, and subsurface analysis, indicate gas-in-place (GIP) resources of around 75 million standard cubic metres (MMSCM) in this new zone. This marks the first successful establishment of hydrocarbon presence in the shallower Sanu Formation within the Dandewala Field, which was already known for conventional gas production. The find is expected to enhance the overall prospectivity of the block and pave the way for further appraisal and development activities.
“This marks the first-ever successful establishment of gas presence in the shallower Sanu Formation within the Dandewala field, thereby opening up a new play and validating our strategy of revisiting the subsurface potential through focused technical interventions and a “missed opportunities” approach,” said OIL in the statement filed to stock exchanges.
“This development notably enhances the overall prospectivity of the Dandewala field and augurs well for future appraisal and development efforts for guiding and scaling up the resource potential and production in the field,” the company added.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, lauded the OIL team for their “perseverance, technological excellence, and unwavering commitment,” noting that the development would add momentum to India’s journey towards energy self-sufficiency under the guidance of Prime Minister Shri Narendra Modi. The minister described it as scripting a new chapter in Rajasthan for strengthening domestic energy production.
India’s quest to strengthen domestic production of energy scripts a new chapter in Rajasthan.
— Hardeep Singh Puri (@HardeepSPuri) May 23, 2026
The Energy Maharatna @OilIndiaLimited has successfully unlocked a new gas-bearing pay zone in the Dandewala Field. The flow of natural gas for the first time from the shallower Sanu… pic.twitter.com/1tGfE35QAO
This discovery assumes greater importance against the backdrop of India’s high dependence on imported natural gas and prevailing global uncertainties. India’s natural gas consumption currently stands at around 187 million standard cubic metres per day (MMSCMD). While the initial flow of 0.025 MMSCMD from this well represents a modest addition, it signals potential for scaling up production through further development and opens a new exploration in a relatively shallow and cost-effective horizon.
India currently meets nearly 50 per cent of its natural gas demand through LNG imports, making it vulnerable to international price volatility and supply disruptions. Geopolitical tensions in West Asia have repeatedly highlighted risks associated with key chokepoints such as the Strait of Hormuz, through which a substantial portion of India’s energy imports pass. In such a scenario, every increment in domestic production helps reduce the import bill, conserve foreign exchange, and enhance energy security.
