India’s energy landscape just received a timely shot in the arm.
On March 29, 2026, state-owned Oil and Natural Gas Corporation (ONGC) commenced commercial gas production from its ambitious Daman Upside Development Project (DUDP) in the Arabian Sea.
This milestone marks a significant step toward reducing India’s dependence on imported natural gas and strengthening domestic energy supply amid global uncertainties.
The Daman Upside Development Project: Fast-Track Execution Delivers ResultsLocated approximately 180 km northwest of Mumbai and 80 km south of Pipavav in Gujarat, the DUDP is a $1 billion (around ₹8,300 crore) offshore development in the Western Offshore basin.Key highlights of the project include:
- First gas started flowing from the B-12-24P platform, with supplies already routed to the Hazira processing plant in Gujarat.
- The project was executed in less than two years from the award date — a commendable feat in the capital-intensive offshore sector.
- Infrastructure: Four new wellhead platforms and roughly 140 km of subsea pipelines.
- Ultimate potential: 21.5 billion cubic meters (BCM) of natural gas over the life of the project.
- Peak production target: Around 5 million standard cubic meters per day (MMSCMD).
Production from the remaining wells will be ramped up in a phased manner, allowing ONGC to gradually scale output as systems stabilize.
This development comes at a critical time when India imports nearly half of its natural gas requirements.
Every additional MMSCMD of domestic gas helps ease pressure on the economy, supports industries like power, fertilizers, and city gas distribution, and contributes to the nation’s energy transition goals.
Mumbai High: The Evergreen Giant of the Arabian Sea
While the Daman project grabs headlines for its fresh contribution, the real backbone of ONGC’s Western Offshore operations remains the legendary Mumbai High (Bombay High) field — discovered in the 1970s and producing since 1976.Mumbai High, along with associated fields like Bassein, Neelam-Heera, and satellite structures, forms the heart of ONGC’s Arabian Sea portfolio.
Recent performance updates:
- In partnership with BP (onboarded as Technical Services Provider in 2025), ONGC has already achieved incremental gains: approximately 2–2.5 MMSCMD additional gas production and 3,500–4,000 barrels per day extra oil.
- Long-term ambition: Up to 89% increase in gas output and 44% rise in oil from Mumbai High over the next decade, potentially unlocking billions in incremental value.
- The field continues to hold substantial remaining reserves, with ongoing redevelopment efforts focusing on enhanced recovery, water injection, new wells, and facility upgrades.
Together, the Western Offshore cluster (including Mumbai High) contributes a dominant share of ONGC’s total gas production, which hovered around 20 BCM in recent fiscal years.
ONGC is targeting further growth in FY 2026-27.
Why This Matters for India
- Energy Security: New gas from Daman and incremental output from mature fields like Mumbai High directly support the government’s push for Atmanirbhar Bharat in the hydrocarbon sector.
- Economic Impact: Affordable domestic gas benefits power plants, fertilizer units, and petrochemical industries while helping moderate LNG import bills.
- Operational Excellence: Completing a $1 billion deep offshore project in record time showcases ONGC’s improving project execution capabilities.
- Future Pipeline: ONGC continues investing in life-extension projects, pipeline replacements, and new discoveries across the Arabian Sea to arrest natural decline in mature fields and unlock untapped potential.
Looking Ahead
The Daman Upside project is just one piece of ONGC’s larger strategy to ramp up offshore production.
With ongoing collaborations (including BP at Mumbai High), new tenders for technical expertise in other Western Offshore clusters, and a strong capex focus, the company is positioning itself for sustained output growth.
As production from Daman ramps up and Mumbai High benefits from technology infusion, India’s Western Offshore is set to play an even bigger role in meeting the country’s rising energy demand.
What do you think?
Will these offshore developments meaningfully reduce India’s gas import dependence in the coming years?
Share your views in the comments.