India to auction vast unexplored areas for offshore oil drilling
What's the story
In a bid to tackle the biggest energy supply shock in decades, India is ramping up its domestic crude exploration efforts. The country, which heavily relies on oil imports, will soon open vast unexplored areas for bidding. This initiative, dubbed 'Samudra Manthan,' aims to boost production amid rising energy demands and global uncertainties. A significant portion of funding has been allocated for offshore drilling operations.
Strategic shift
Oil and gas shipments resume
India, the world's third-largest oil importer and second-largest buyer of liquefied petroleum gas, was severely affected by the Strait of Hormuz blockade during the US-Iran conflict. However, with a temporary ceasefire deal between the US and Iran in place, oil and gas shipments through this critical Gulf waterway have resumed. Restrictions and price hikes in India are also being reversed as a result.
Expansion plans
Domestic crude production
India's Petroleum and Natural Gas Minister Hardeep Singh Puri has revealed that the country is in the process of auctioning around 250,000 square kilometers (96,500 square miles) of unexplored territory. This comes as part of India's efforts to boost domestic crude production, which currently only meets about 10% of its total needs. In 2025-2026, India's domestic crude production stood at a mere 25.98 million metric tons or roughly 522,000 barrels per day (bpd).
Supplier diversification
Diversification of crude suppliers
To weather the energy crunch, India has diversified its crude suppliers from 27 to 41 countries. These include Iran, Venezuela, and increased imports from Russia and several African nations. Despite criticism from the US and Europe over its purchase of Russian oil, accused of funding Moscow's war against Kyiv, India maintains a "pragmatic approach" prioritizing its energy needs over ideological considerations.
Offshore initiatives
Offshore exploration
India's domestic crude production is mainly concentrated in the western region, Mumbai offshore fields, Rajasthan, Gujarat, and the northeastern state of Assam. However, Puri has emphasized an "ocean of energy opportunities" off India's Andaman and Nicobar Islands. The country is working with "deepwater exploration experts" such as Petrobras, TotalEnergies, BP, Shell, and ExxonMobil to tap into these resources.
Mission launch
'Samudra Manthan' mission
The 'Samudra Manthan' mission was launched by Prime Minister Narendra Modi during his Independence Day speech in August 2025. The initiative aims to find oil and gas reserves under the sea. Despite the challenges of meeting rapidly growing domestic demand in a carbon-neutrality goal by 2070, India is also investing heavily in renewables, nuclear energy, and petrol-ethanol blending.