India Steps Up Domestic Oil Exploration to Strengthen Energy Security
India is placing greater emphasis on domestic oil and gas exploration as rising energy demand and uncertainties in global energy markets make energy security an increasingly important priority. The push is particularly focused on offshore and deep-water resources, where advanced technology and large-scale investment could help unlock additional domestic hydrocarbon reserves.
The renewed focus comes as energy markets remain vulnerable to geopolitical tensions, disruptions in major shipping routes and fluctuations in international crude prices. For India, which relies significantly on imported crude oil, developing more domestic resources can provide greater diversification and strengthen the resilience of its energy supply.
Domestic Exploration Gains Strategic Importance
A senior Oil India Limited official recently highlighted the need to strengthen India's domestic exploration capabilities, pointing to the changing global energy environment and the importance of developing indigenous resources. The expansion of exploration is expected to involve improved geological data, modern seismic technology, advanced drilling techniques and stronger supporting infrastructure.
India's large energy requirements mean that imports will continue to remain an important part of the country's energy mix. However, increasing domestic production can complement imported supplies and provide an additional layer of protection against international disruptions.
Offshore and Deep-Water Resources Offer New Opportunities
A major part of India's unexplored hydrocarbon potential lies beneath its offshore areas. Deep-water and ultra-deep-water exploration, however, requires sophisticated technology and significant financial investment because drilling operations are more complex and involve higher geological and operational risks.
The eastern offshore region, including areas off the coast of Odisha, has recently attracted attention following deep-water exploration activity. A natural gas discovery by ONGC off Odisha, reported in September 2026, has added to interest in the potential of India's offshore basins. The discovery will require further appraisal to determine its commercial viability, but it illustrates the opportunities that deeper exploration can present.
Samudra Manthan Gives Exploration a Major Push
India's offshore exploration strategy has received a significant boost through the Samudra Manthan National Offshore Exploration Scheme, approved in August 2026 with an outlay of ₹84,084 crore through FY2030–31. The programme is designed to accelerate offshore exploration, reduce investment risks and build infrastructure needed to bring commercially viable discoveries into production.
The scheme includes ₹28,534 crore for modern offshore seismic data acquisition and processing and ₹43,200 crore for drilling 60 deep-water exploration wells. It also provides ₹10,000 crore for common offshore infrastructure hubs and ₹2,000 crore for oil and gas manufacturing and services zones. Government support for eligible drilling costs is intended to encourage greater participation in technically challenging exploration projects.
Technology and Infrastructure Will Be Critical
Expanding exploration is not simply a question of drilling more wells. India's ability to convert offshore geological potential into production will depend on sophisticated seismic surveys, data interpretation, deep-water drilling capabilities, offshore engineering and infrastructure for transporting and processing hydrocarbons.
The manufacturing and services component of Samudra Manthan is particularly significant because a stronger domestic ecosystem can support the wider exploration industry. Building capabilities in equipment, services and technology can also reduce dependence on external suppliers for critical parts of offshore operations.
At the same time, exploration remains inherently uncertain. Not every prospective geological structure results in a commercially viable discovery, making better data, technology and appropriate risk-sharing mechanisms important for attracting sustained investment.
Energy Security Requires a Broader Approach
Domestic oil exploration is one part of India's wider energy-security strategy. The country is simultaneously expanding refining capacity, developing natural gas infrastructure and increasing renewable-energy deployment. This diversification is important because India's future energy requirements will have to be met through multiple sources rather than dependence on any single fuel.
The government has also highlighted the role of infrastructure and diversified energy supplies in helping India manage external shocks. At the India Energy Week 2027 curtain-raiser, Petroleum and Natural Gas Minister Hardeep Singh Puri said India's energy resilience has been supported by diversified supplies, expanded refining capacity and improved infrastructure.
India Energy Week 2027 to Focus on Future Energy Needs
The country's evolving energy strategy will receive international attention at India Energy Week 2027, scheduled to take place in Kolkata from January 28 to 31, 2027. The event will be held under the theme “Unlocking Innovation. Securing Energy. Shaping Tomorrow.”
The organisers expect more than 75,000 energy professionals and over 700 international exhibitors to participate. Discussions are expected to cover energy security, technology, investment, energy transition and the changing structure of global energy markets.
The event also provides an opportunity for Indian companies and policymakers to engage with global energy producers, technology providers and investors as the country seeks to expand its upstream capabilities.
The MGMM Outlook
India’s renewed focus on domestic oil and gas exploration highlights the importance of strengthening energy security as demand continues to grow and global energy markets remain subject to disruptions. Greater exploration of offshore and deep-water resources, supported by modern seismic technology, advanced drilling and improved infrastructure, can help unlock additional domestic potential. Initiatives such as the Samudra Manthan National Offshore Exploration Scheme can provide further momentum to exploration, investment and the development of capabilities across the domestic energy sector.
Expanding indigenous exploration can complement India’s diversified energy strategy by adding domestic resources alongside imports, natural gas, refining capacity and renewable energy. The development of offshore infrastructure, technology and manufacturing capabilities can also strengthen the wider energy ecosystem and create opportunities for greater participation by Indian companies. As exploration activity expands, continued investment in technology, data and infrastructure will be important for converting India’s geological potential into commercially viable energy resources.
(Sources: The Hindu BusinessLine, Financial Express, Times of India)
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