India expands domestic oil exploration after Middle East energy shock

India is intensifying its efforts to expand domestic crude oil exploration, spurred by recent energy supply shocks and disruptions in the Middle East. Minister of Petroleum and Natural Gas Hardeep Singh Puri announced plans to offer around 250,000 square kilometers of unexplored territory for bidding, aiming to bolster the nation's energy security.

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We are currently in the process... to bid out about 250,000 square kilometers (96,500 square miles) of unexplored area.

India, a major importer of oil and liquefied petroleum gas, experienced significant challenges due to restrictions in the Strait of Hormuz during the conflict between the United States and Iran. While shipments have resumed, the minister highlighted the "fresh impetus" for domestic exploration. Current domestic production meets only about 10 percent of India's crude needs, a stark contrast to its peak production levels.

To navigate the energy crunch, India broadened its crude suppliers from 27 to 41 countries, including Iran, Venezuela, and Russia. Puri defended this "pragmatic approach," prioritizing energy needs over "ideological considerations," despite past criticism from Western nations regarding Russian oil purchases.

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we had a 'pragmatic approach' that put our energy needs above 'ideological considerations'.

The minister also pointed to "ocean of energy opportunities" in the Andaman and Nicobar archipelago, an area geologically similar to hydrocarbon-bearing basins in Southeast Asia. State-owned Oil India has drilled exploratory wells in the Andaman Sea, with plans for more deepwater exploration. This push coincides with a massive $9 billion project to develop a megaport, airport, and city on Great Nicobar Island, transforming a remote area into a strategic hub.

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Large number of deepwater and ultra-deepwater exploration wells are planned in our offshore basins to fully exploit our hydrocarbon reserves.