Middle East crisis prompts India’s bold drive to deepwater oil search
- Minister Hardeep Singh Puri described India’s outlook as “exceptionally bullish,” noting that exploration and production activity is set to increase significantly, although he acknowledged the sector remains capital-intensive and long-term in nature.
The Middle East crisis has exposed India’s heavy reliance on Gulf crude. To insulate itself from supply chokepoints like the Strait of Hormuz, the nation is aggressively expanding domestic deepwater exploration under the National Deep Water Exploration Mission backed by a $10 billion investment program.
The country, the world’s third-largest oil importer, is preparing to open around 250,000 square kilometers of unexplored territory for bidding, according to Petroleum and Natural Gas Minister Hardeep Singh Puri. The move marks one of the most significant expansions of India’s upstream oil sector in years.
The push follows supply disruptions linked to restrictions in the Strait of Hormuz during the recent conflict between the United States and Iran, which temporarily affected global oil and gas flows and pressured import-dependent economies such as India.
Although stability has since returned following a temporary de-escalation and the resumption of shipments through key Gulf routes, the episode has reinforced India’s drive to strengthen energy security through domestic production.
The exploration expansion forms part of India’s broader “Samudra Manthan” initiative, a national deepwater exploration mission launched to accelerate offshore oil and gas discovery.
Under the program, India plans extensive drilling activity across offshore basins, including deepwater and ultra-deepwater sites, supported by a major investment push estimated at around $10 billion.
The initiative also aims to attract global energy majors, with companies such as Petrobras, TotalEnergies, BP, Shell and ExxonMobil engaged in discussions and technical collaboration on deepwater exploration projects.
India’s domestic oil production remains concentrated in western onshore and offshore fields in Mumbai, Rajasthan, Gujarat, and parts of the northeast.
However, officials are increasingly focusing on the Andaman and Nicobar Basin, which is believed to hold significant untapped hydrocarbon potential.
The region, described by officials as an “ocean of energy opportunities,” is geologically similar to oil-bearing basins in Southeast Asia, prompting renewed exploration interest.
At the same time, India is also advancing large-scale infrastructure and energy projects in the Andaman Sea region, including the multi-billion-dollar Great Nicobar development plan featuring a port, airport, and urban expansion.
India’s energy demand continues to grow rapidly, driven by population growth and economic expansion. Consumption has risen from around 5 million barrels per day in 2021 to approximately 5.6 million barrels today, with expectations of reaching 6 million barrels per day in the near future.
Despite expanding renewable energy investments and long-term carbon neutrality targets, officials say fossil fuel demand will remain strong in the short to medium term, necessitating continued oil and gas exploration.
Minister Hardeep Singh Puri described India’s outlook as “exceptionally bullish,” noting that exploration and production activity is set to increase significantly, although he acknowledged the sector remains capital-intensive and long-term in nature.
He added that India is pursuing a “mission mode” strategy to unlock offshore reserves and reduce dependence on imported crude, even as global energy markets remain volatile.
