Oil and Natural Gas Corporation (ONGC), commenced gas production from its Daman Upside Development Project in the Arabian Sea, a move that could significantly reduce the country’s dependence on natural gas imports in the coming years. The development comes at a time when the ongoing US–Iran conflict continues to disrupt global energy markets, pushing nations like India to accelerate domestic exploration and production.
Project Location and Commissioning
The Daman Upside Development Project is located about 180 kilometres northwest of Mumbai in the Arabian Sea. According to ONGC, the project achieved a key milestone on March 29, when gas started flowing from Platform B-12-24P, marking the beginning of monetisation from the field. The platform has been successfully commissioned and gas sent to Hazira Plant. The produced gas is currently being transported to ONGC’s Hazira processing facility in Gujarat. Notably, the offshore development has been executed in less than two years, reflecting an accelerated implementation timeline for a complex offshore energy project.
Production Plans and Capacity
ONGC plans to gradually ramp up output as additional wells and platforms become operational. The project includes four new wellhead platforms, including the currently commissioned B-12-24P. At peak capacity, the field is expected to produce 21.5 billion cubic metres (BCM) of natural gas over its lifecycle. Production from the remaining wells will be brought online in a phased manner to optimise output and ensure operational stability.
Potential Impact on India’s Gas imports
The most significant aspect of the Daman project is its potential to offset a substantial portion of India’s natural gas imports. According to data from the Petroleum Planning and Analysis Cell (PPAC)—the government’s official repository of oil and gas statistics—India imported 29.185 billion cubic metres of natural gas during the first 10 months of FY26. If the Daman asset reaches its projected output of 21.5 BCM, it would be equivalent to around 73.66% of the gas imported during that period.
Looking at the annualised import estimate for FY26, which stands at 35.022 BCM, the Daman project’s peak output could account for roughly 61.38% of the country’s annual gas imports. Such a contribution would represent a significant step toward improving India’s energy security and reducing reliance on imported fuel.
Role of PPAC in Energy Data
The Petroleum Planning and Analysis Cell (PPAC) operates under the ministry of petroleum and natural gas and serves as the primary source of data and analysis related to India’s petroleum and natural gas sector. Its statistics are widely used to track trends in production, consumption, and imports across the country’s energy landscape.
Government Push to Boost Domestic Exploration
The government is continuing efforts to expand domestic hydrocarbon exploration. On March 30, authorities announced the opening of 21 oil and gas blocks under a new round of bidding. The initiative is part of the Open Acreage Licensing Policy (OALP), which aims to encourage exploration by allowing companies to select blocks for bidding throughout the year. As reported by msn.com, the policy seeks to increase domestic production and reduce India’s dependence on imported oil and gas, a strategic priority amid rising geopolitical uncertainties in global energy markets.
