India Looks to Boost Exploration as Hormuz Crisis Threatens Supply
India needs to boost domestic oil and gas exploration to enhance its energy security amid supply disruptions that drive energy prices higher, according to a senior official at state-owned exploration and production company Oil India Limited (OIL). “Disruptions to global supply chains and major energy corridors can have an immediate impact on energy flows, prices and economies worldwide,” IOL’s…
India is seeking to increase its domestic oil and gas exploration efforts to improve energy security, following supply disruptions that have driven up energy prices, a senior official from state-owned exploration and production company Oil India Limited told a recent energy industry event. Abhijit Majumder, IOL's Director of Finance, highlighted that disruptions to global supply chains and energy corridors can immediately affect energy flows, prices, and economies worldwide, underscoring the importance of bolstering India's energy security.
In response to geopolitical instability and its impact on energy security, India has launched a bold plan to boost exploration with an ambitious National Offshore Exploration Scheme, backed by $8.8 billion in government support through FY 2030–31. This program represents the country's most significant offshore exploration initiative to date.
The government aims to provide financial backing of up to 50% of the cost for drilling deepwater exploration wells, reducing exploration risks, encouraging investment, and accelerating the development of India's offshore hydrocarbon potential.
India's future hydrocarbon potential lies primarily in deepwater and ultra-deepwater basins like the Krishna-Godavari, Cauvery, Mahanadi, and the Andaman region. These frontier areas demand advanced technology and substantial investment, with a single deepwater exploratory well costing roughly $125–150 million. The federal government recognizes the high-risk, high-cost nature of such exploration and is adopting a risk-sharing approach to encourage sustained investment, accelerate exploration, and unlock India's offshore hydrocarbon resources.
As part of its strategy to enhance energy security, India plans to construct new storage sites, recognizing its role as the world's third-largest crude oil importer. By increasing its domestic energy reserves, India aims to build resilience against supply shocks and ensure a stable energy supply for its economy.
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