India Targets 250,000 Sq Km for Oil Exploration After Middle East Energy Disruption

India is preparing to expand domestic crude and gas exploration after the Middle East war disrupted energy supplies through the Strait of Hormuz. Petroleum and Natural Gas Minister Hardeep Singh Puri told AFP that the government is working to bid out about 250,000 square kilometres of unexplored area, while backing a larger $10 billion programme covering 1 million square kilometres.

Why Did the Middle East War Bring Domestic Exploration Back Into Focus?

The conflict exposed a structural vulnerability in India’s energy supply chain. Restrictions on the Strait of Hormuz, the Gulf waterway used for oil and gas shipments, caused major disruption after hostilities broke out between the United States and Iran.

Shipments through the route have since resumed following a temporary US-Iran deal that paused hostilities, and fuel price hikes introduced during the crunch are being rolled back. This disruption gave fresh momentum to efforts to strengthen domestic energy production and reduce dependence on a narrow set of import routes.

How Dependent Is India on Imported Crude?

Despite being one of the world’s largest energy consumers, India remains a modest producer. It is the world’s third-largest oil importer and the second-largest buyer of liquefied petroleum gas, per the Mint report.

Domestic output currently accounts for only a fraction of what the country consumes daily and has not returned to the 2011 peak since.

Which Areas Is the Government Opening for Exploration?

Puri said India is currently bidding out about 250,000 square kilometres of unexplored territory. A wider $10 billion programme aims to extend coverage to 1 million square kilometres of unexplored area.

A major focus within this push is the Andaman Basin. Puri described the Andaman and Nicobar archipelago, an 800-kilometre-long chain of islands in the seas bordering Thailand and Indonesia, as holding significant untapped energy potential. The basin is geologically similar to hydrocarbon-bearing formations in Southeast Asia, Mint reported.

In June, Puri shared a video showing a gas flare at an exploratory well drilled by state-owned Oil India in the Andaman Sea, signalling active progress in the region.

What Is the Samudra Manthan Mission?

New Delhi is working with deepwater exploration specialists, including Petrobras, TotalEnergies, BP, Shell, and ExxonMobil, to develop offshore basins. The same Andaman Sea region is also seeing development through the $9 billion Great Nicobar Island Project, which includes plans for a megaport, an airport, and a city.

How Did India Manage Crude Supply During the Conflict?

Rather than reducing consumption, India expanded its crude supplier network from 27 to 41 countries during the disruption. The expanded list included Iran, Venezuela, higher volumes from Russia, and several African nations.

New Delhi has previously faced criticism from the United States and Europe for purchasing Russian crude, with concerns raised about supporting Moscow’s war against Ukraine. Puri said India followed a pragmatic approach that placed energy security above ideological considerations.

Final Outlook: How Fast Is India’s Energy Demand Growing?

The government is simultaneously investing in renewables, nuclear energy, and ethanol blending with petrol, while maintaining a carbon-neutrality target for 2070.