India has approved an investment programme worth up to 840.84bn rupees ($8.8bn) to accelerate offshore oil and gas exploration over the next five years, according to Splash247. The National Offshore Exploration Scheme will run until the end of the 2030-31 financial year and is expected to speed up the addition of more than 600m tonnes of discoverable oil equivalent to the country's reserves.
Programme scope and funding
Splash247 reported that the programme will fund:
- Seismic surveys, data processing and interpretation
- Exploration drilling in deepwater and ultra-deepwater areas
- Scientific drilling in frontier basins
- Shared offshore production and evacuation infrastructure
- Creation of an integrated oil and gas manufacturing and services zone
The government said the scheme would encourage investment across the exploration and production supply chain, create long-term opportunities for companies, and strengthen domestic technical capabilities, according to the same report.
Supply-side developments
India has opened most of its offshore acreage to exploration over the past decade while updating its legal and contractual framework and expanding the National Data Repository, Splash247 reported. The latest initiative is part of the country's efforts to reduce its dependence on imported energy.
Splash247 reported that India currently produces only around 10% of the crude oil it consumes and is the world's third-largest oil importer and second-largest buyer of LPG.
India currently produces only around 10% of the crude oil it consumes — the world's third-largest oil importer and second-largest LPG buyer.
The government has also widened its crude supply base from 27 to 41 countries, according to the report. Prime Minister Narendra Modi first announced the offshore exploration mission in an address in August last year.
Demand-side context
The investment reflects India's structural import dependence on oil and gas. With domestic crude output covering roughly a tenth of consumption, the exploration push is aimed at boosting domestic reserves and production capacity, Splash247 noted. The programme is expected to support long-term opportunities for companies across the offshore supply chain.
Key programme figures
| Metric | Figure |
|---|---|
| Programme investment | up to 840.84bn rupees ($8.8bn) |
| Programme duration | to end of 2030-31 financial year |
| Expected addition to reserves | more than 600m tonnes of discoverable oil equivalent |
| India's crude self-sufficiency | around 10% |
| Oil import ranking | world's third-largest |
| LPG import ranking | second-largest buyer |
| Crude supply sources | widened from 27 to 41 countries |
Related cabinet approval
In a separate decision, the cabinet approved a $530m programme for floating solar photovoltaic developments with energy storage, according to Splash247. The plan targets 102 GW of capacity on reservoirs, canals, and industrial water bodies over five years and is expected to prevent 10m tonnes of carbon dioxide emissions.
For commodity traders and analysts, the scheme signals India's intent to expand upstream supply security over the medium term, while the solar programme points to parallel investment in domestic energy diversification.
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