India expands oil exploration to strengthen energy security after Middle East crisis

India is moving ahead with an ambitious plan to increase domestic oil exploration after recent tensions in the Middle East.

India is moving ahead with an ambitious plan to increase domestic oil exploration after recent tensions in the Middle East exposed the country’s heavy dependence on imported energy. The conflict between the United States and Iran disrupted supplies passing through the Strait of Hormuz and created one of the biggest energy challenges India has faced in decades. Although oil shipments have now resumed following a temporary pause in hostilities, the government says the crisis has reinforced the need to develop local energy resources.

Petroleum and Natural Gas Minister Hardeep Singh Puri said India is preparing to open around 250,000 square kilometres of unexplored land and offshore areas for oil and gas exploration. The move is part of a wider effort to reduce the country’s reliance on imports and improve long term energy security. At present, India produces only a small share of the crude oil it consumes, making it one of the world’s largest importers of energy.

Official figures show that India’s crude oil production during the 2025 and 2026 financial year reached nearly 26 million metric tonnes. This is enough to meet only around ten percent of the country’s total demand. Production has also fallen significantly over the past decade, dropping from a peak of more than 900,000 barrels per day in 2011 to just over 520,000 barrels per day today.

During the recent supply crisis, India avoided major shortages by purchasing crude oil from a wider range of countries. The number of suppliers increased from 27 to 41, with additional imports coming from nations such as Iran, Venezuela, Russia and several African countries. India has faced criticism from some Western governments over its continued purchase of Russian oil, but Puri defended the policy by saying New Delhi gives priority to its own energy needs rather than political considerations.

The government also believes there is strong potential for new discoveries in the Andaman and Nicobar region. The offshore basin near the island chain is considered geologically similar to several oil and gas rich areas in Southeast Asia. Puri recently highlighted exploration work being carried out by the state owned company Oil India, expressing confidence that the region could become an important source of future energy production.

India is also working with several leading international energy companies to support deepwater exploration. These partnerships are expected to help develop advanced drilling technologies and unlock reserves located far below the seabed. At the same time, the government is investing heavily in infrastructure across the Andaman and Nicobar Islands, including plans for a major port, airport and urban development project that could strengthen both economic activity and strategic interests in the region.

The push to expand exploration began even before the latest Middle East conflict. In August last year, Prime Minister Narendra Modi announced the National Deep Water Exploration Mission as part of a broader effort to identify oil and gas reserves beneath the sea. The initiative aims to increase domestic production while supporting India’s growing economy.

Despite these efforts, meeting future demand will remain a major challenge. India is the world’s most populous country and its energy consumption continues to rise rapidly. The government is investing in renewable energy, nuclear power and cleaner fuels, but oil will remain a key part of the country’s energy mix for years to come. According to Puri, daily oil consumption has already increased from five million barrels in 2021 to about 5.6 million barrels and is expected to reach six million barrels in the near future.

The government has committed around 10 billion dollars to expand oil and gas exploration across nearly one million kilometres of unexplored territory. While the minister acknowledged that exploration requires significant investment and time, he expressed confidence that India’s domestic energy production will grow steadily in the coming years.