India, hit by its biggest energy supply disruption in decades during the recent Middle East war, is accelerating efforts to expand domestic crude exploration, according to Petroleum and Natural Gas Minister Hardeep Singh Puri.

The world's third-largest oil importer and second-largest buyer of liquefied petroleum gas faced severe supply disruptions when restrictions on the Strait of Hormuz cut off shipments during the U.S.-Iran conflict. A temporary truce has since reopened the Gulf waterway, easing prices and restoring flows, but the crisis has spurred New Delhi to push harder for energy independence.

Puri announced plans to auction nearly 250,000 square kilometers of unexplored territory for drilling. India currently produces only about 10 percent of its crude needs, roughly 522,000 barrels per day, well below its 2011 peak of over 900,000 bpd.

To weather the crunch, India diversified suppliers from 27 to 41 countries, adding imports from Iran, Venezuela, Russia, and several African nations. While criticized by the U.S. and Europe for buying Russian oil, Puri defended India’s “pragmatic approach,” prioritizing energy security over ideology.

Expanding Frontiers

Domestic production is concentrated in Mumbai’s offshore fields, Rajasthan, Gujarat, and Assam. But Puri has highlighted vast untapped reserves in the Andaman and Nicobar Islands, calling them an “ocean of energy opportunities.” State-owned Oil India has already struck exploratory success in the Andaman Sea, with deepwater projects planned alongside global majors like Petrobras, BP, Shell, and ExxonMobil.

The exploration drive aligns with Prime Minister Narendra Modi’s “Samudra Manthan” mission, launched in 2025, to intensify deepwater oil and gas searches.

Balancing Growth and Green Goals

India’s energy demand is surging, rising from 5 million barrels per day in 2021 to 5.6 million today, with expectations to hit 6 million soon. While pledging carbon neutrality by 2070, the government is simultaneously investing in renewables, nuclear power, and ethanol blending.

Despite challenges, Puri remains optimistic: “Our exploration and production is going up, and it’s going to rise very fast,” he said, citing a $10 billion program to expand drilling into one million square kilometers of unexplored territory.