Oil India commences gas production from Bakhritibba DSF block in Rajasthan

New Delhi: Oil India Limited (OIL), India’s second-largest oil and gas exploration and production (E&P) company, has officially commenced gas production from the Bakhritibba Discovered Small Field (DSF) block located in the arid terrains of western Rajasthan’s Jaisalmer district wef June 1, 2025.

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“OIL has set benchmark by achieving fast monetisation from DSF III block by successfully drilling 3 MWP wells within the development period leading to supply of 67,200 SCMD gas to be further enhanced to production of 100MSCMD gas from the Bakhritibba Block in Jaisalmer district in Western Rajasthan,” said Oil India in a statement on Monday.

“This milestone underscores OIL’s unwavering commitment to resilience, resolve, and responsibility, as teams on the ground operate in some of the most challenging desert conditions to sustain vital energy flows from this frontier region,” said OIL.

Maintaining its production levels from old and maturing fields, Oil India achieved its highest-ever combined oil and gas production (O+OEG) of 6.71 MMTOE during FY25. Crude oil production for the year ended March 31, 2025 increased by 2.95 percent to 3.458 MMT and the natural gas production during FY25 increased by 2.20 percent to 3.252 BCM and is the highest-ever achieved by the company since its inception. The company earned a revenue of Rs 15,741 crore from oil production and Rs 5,514 crore from natural gas in FY2024-25. It is targeting oil and gas production of 10-12 MMTOE by 2030.

The Government had launched DSF Policy in 2015 to pave the way for awarding discovered acreages and monetising the unmonetised discoveries. The DSF policy has multiple attractive features like revenue sharing contract model with low regulatory burden, no minimum biddable work programme, no prior technical qualification required, no upfront signature bonus, etc.

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