India is preparing to significantly expand domestic oil and gas exploration after recent supply disruptions triggered by the conflict in West Asia exposed the country's vulnerability to geopolitical shocks, prompting the Centre to accelerate efforts to reduce dependence on imported crude.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the disruption to global energy supplies during the conflict reinforced the need for India to strengthen domestic hydrocarbon production and diversify its energy security strategy.
Speaking to mediapersons, Puri said the government was preparing to auction nearly 2.5 lakh sq km of unexplored sedimentary basins under a fresh exploration programme aimed at unlocking new oil and gas reserves.
Major offshore push under 'Samudra Manthan'
The proposed expansion, expected to be carried out under the government's 'Samudra Manthan' initiative, will focus largely on offshore exploration, including frontier areas in the Andaman region and other underexplored basins.
Officials estimate that nearly ₹95,000 crore will be invested over the coming years to intensify exploration activities, improve geological surveys and encourage greater participation from domestic and global energy companies.
The move follows concerns over disruptions in oil shipments through the Strait of Hormuz, one of the world's busiest energy corridors, during the recent conflict involving Iran, Israel and the United States. Nearly a fifth of global crude oil passes through the narrow waterway, making it strategically vital for energy-importing nations such as India.
Although shipping has largely normalised following the ceasefire, policymakers view the episode as a reminder of the risks associated with heavy dependence on imported energy.
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Reducing import dependence
India imports nearly 85 per cent of its crude oil requirements, making it the world's third-largest crude importer. Official data show domestic crude production stood at 25.98 million metric tonnes during 2025-26, meeting barely one-tenth of the country's annual demand.
Domestic production has also witnessed a steady decline over the past decade as output from ageing fields has fallen and new discoveries have remained limited.
The government has, therefore, placed renewed emphasis on expanding exploration, particularly in deep-water and frontier basins, alongside reforms aimed at making the exploration and production sector more attractive to investors.
The latest initiative complements other energy security measures announced after the West Asia crisis, including plans to diversify crude import sources, expand strategic petroleum and LPG reserves, and strengthen supply-chain resilience against future geopolitical disruptions.
Industry experts, however, caution that while aggressive exploration can improve India's long-term energy security, commercially viable discoveries typically take several years to move from exploration to production.
Nevertheless, the government believes expanding domestic exploration today will help build a stronger foundation for meeting the country's rising energy demand while reducing exposure to global supply shocks in the years ahead.
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