India Looks to Boost Exploration as Hormuz Crisis Threatens Supply

A senior finance executive at state-run Oil India Limited (OIL) told an industry forum that increasing domestic exploration is necessary to bolster India's energy security after recent disruptions raised prices and strained supply lines. Abhijit Majumder pointed to instability in energy corridors such as the Strait of Hormuz as an example of how regional crises can ripple across global markets and affect other economies.

Responding to a multi-year decline in domestic crude output, the federal government has unveiled the National Offshore Exploration Scheme, which earmarks $8.8 billion in support through fiscal year 2030–31. Under the program, New Delhi will underwrite up to half the cost of drilling costly deepwater exploration wells to lower the financial risk for explorers and attract investment into frontier basins.

Officials and the government highlight that India's remaining hydrocarbon prospects are concentrated in deepwater and ultra-deepwater provinces — including the Krishna-Godavari, Cauvery, Mahanadi and Andaman regions — where technological demands and costs are high. The source material estimates a single deepwater exploratory well can cost roughly $125–150 million, underscoring why the state is opting for a risk-sharing model to stimulate activity.

Alongside exploration incentives, India plans to increase crude storage capacity to improve resilience against supply shocks. The combined measures reflect a broader strategy to reduce exposure to international disruptions by expanding domestic production potential and buffer capacity.