Union Petroleum Minister Hardeep Singh Puri on Saturday, 23 May 2026 welcomed a significant upstream energy development in Rajasthan, announcing that Maharatna public-sector undertaking Oil India Limited has successfully unlocked a new gas-bearing pay zone in the Dandewala Field, with natural gas flowing from the shallower Sanu Formation for the very first time at nearly 25,000 standard cubic metres per day.

Context

Puri described the discovery as 'a new chapter' in India's quest to strengthen domestic energy production. In his post on X, the minister credited the achievement to 'the perseverance, technological excellence and unwavering commitment of Team Oil India,' and linked the development to Prime Minister Narendra Modi's broader agenda of energy self-sufficiency. The Dandewala Field sits within the Jaisalmer Basin of western Rajasthan, a sedimentary province that has drawn sustained upstream investment over the past two decades.

The Sanu Formation is a shallower geological horizon that had not previously yielded commercial gas flows in this field. Tapping it represents a technical milestone: improved seismic interpretation and directional drilling have allowed Oil India to access pay zones that were historically bypassed in favour of deeper targets.

Policy Backdrop

The find arrives within a policy framework designed to accelerate monetisation of domestic hydrocarbon resources. The government replaced the New Exploration Licensing Policy with the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, offering a uniform licence covering conventional and unconventional hydrocarbons and a revenue-sharing model intended to attract both public-sector and private capital.

Subsequent reforms under the Atmanirbhar Bharat package in 2020-21 introduced marketing and pricing freedoms for new gas discoveries, giving producers like Oil India greater flexibility to monetise output. The Open Acreage Licensing Policy has also directed fresh acreage in Rajasthan basins to both ONGC and Oil India, underscoring the government's focus on the region. India's natural gas import dependence still exceeds 45 per cent, making each incremental domestic discovery strategically significant.

Stakeholders and Impact

Oil India Limited, headquartered in Duliajan, Assam, holds Maharatna status — the highest category of operational and financial autonomy granted to central public-sector enterprises. A sustained flow of 25,000 standard cubic metres per day from the Sanu Formation, while modest at this stage, adds to the company's Rajasthan portfolio and could support future city-gas-distribution supply chains in the state.

The Rajasthan state economy stands to benefit through royalties, employment, and downstream industrial gas availability. Industrial gas consumers across the region — from ceramics and glass manufacturers to fertiliser units — are potential end-users as pipeline infrastructure in western Rajasthan continues to expand. Chief Minister Bhajanlal Sharma's office was tagged in the minister's post, signalling coordination between the Centre and the state government.

What's Next

The immediate priority will be appraisal drilling to determine the full extent and long-term deliverability of the Sanu Formation reservoir. If further wells confirm commercial volumes, the discovery could be factored into upcoming bidding rounds for city-gas-distribution networks in Rajasthan. The government's push for higher domestic gas output as a transition fuel — bridging coal dependence and the renewable energy build-out — means successful appraisal here would carry significance well beyond a single field. Analysts and industry observers will watch whether Oil India moves quickly to commit additional drilling capital to the Dandewala area in its next annual plan.