Amid rising geopolitical tensions in West Asia and growing concerns over global energy supplies, India has received a major boost as Oil and Natural Gas Corporation Limited (ONGC) has commenced gas production from its Daman Upside Development Project (DUDP) in the Arabian Sea.
Gas production began on March 29 from platform B-12-24P, with output being directly transported to the Hazira processing plant. Notably, the large-scale offshore project was completed within just two years of contract allocation, marking a significant achievement for India’s domestic energy sector.
Strategic Energy Boost for India
Located approximately 180 kilometers off the Mumbai coast, the project has the capacity to produce 5 million standard cubic meters of gas per day, which is expected to strengthen India’s energy security and reduce dependence on imports.
The development comes at a crucial time as tensions in the Middle East have intensified global energy supply concerns. Disruptions in the Strait of Hormuz have affected gas shipments from Qatar to India, highlighting the urgency of expanding domestic energy production.
Currently, India meets more than half of its natural gas demand through imports. Therefore, the operationalization of this project represents a significant strategic relief for the country.
Expansion of Oil and Gas Exploration
Alongside the start of commercial gas production, the government has opened 80,228 square kilometers of area for oil and gas exploration under the Open Acreage Licensing Policy (OALP-XI).
A total of 21 new exploration blocks have been offered, including:
- 12 onshore blocks
- 4 shallow-water blocks
- 1 deep-water block
- 4 ultra-deep-water blocks
With this addition, the total exploration area proposed in India has expanded to 262,817 square kilometers.
The bidding process for these blocks began on March 30, 2026, and will continue until May 29, 2026.
Strengthening Energy Independence
Experts believe that increasing domestic production and expanding exploration activities will help India enhance long-term energy independence while safeguarding the economy from global supply disruptions.
