India seeks to boost oil exploration amid Hormuz supply fears

India is looking to significantly increase its domestic oil and gas exploration efforts to secure its energy supply, as global supply chains and critical energy routes face disruptions. Abhijit Majumder, Director of Finance at state-owned Oil India Limited (OIL), highlighted that geopolitical instability, such as the crisis in the Strait of Hormuz, can immediately impact energy flows and prices worldwide. The Indian government has outlined an ambitious plan to boost exploration, aiming to reverse a three-year decline in domestic crude oil production. The newly launched National Offshore Exploration Scheme, backed by $8.8 billion in government support through fiscal year 2030–31, is designed to encourage investment in deepwater and ultra-deepwater basins. This initiative will provide financial assistance of up to 50% for drilling deepwater wells, a move intended to reduce exploration risks and accelerate the development of India's offshore hydrocarbon resources. These frontier areas, including the Krishna-Godavari and Cauvery basins, require advanced technology and substantial investment, with individual deepwater wells costing an estimated $125–150 million. The government's risk-sharing approach aims to foster sustained investment and unlock these resources. In addition to exploration, India plans to construct new storage facilities to enhance its resilience against supply shocks, reinforcing its position as the world's third-largest crude oil importer.