# India Expands Offshore Oil and Gas Exploration as Hormuz Disruptions Highlight Import Risks By John Kim Canonical URL: https://www.tokenpost.com/news/business/25301 Published: 2026-09-29T12:02:20.000Z Updated: 2026-09-29T12:02:20.000Z Section: Business > The ₹84,084 crore program will support seismic surveys, 60 deepwater wells and offshore infrastructure through fiscal 2030–31, while a separate plan expands strategic petroleum storage. India is expanding offshore oil and gas exploration as disruptions around the Strait of Hormuz expose the risks of relying on imported energy supplies. India’s Union Cabinet approved ₹84,084 crore through fiscal 2030–31 for the National Offshore Exploration Scheme, known as “Samudra Manthan.” The program covers seismic surveys, deepwater drilling and shared offshore infrastructure in the Krishna-Godavari, Cauvery, Mahanadi and Andaman basins. The plan allocates ₹28,534 crore for offshore seismic data, ₹43,200 crore for 60 deepwater exploration wells, ₹10,000 crore for common offshore infrastructure and ₹2,000 crore for oil and gas manufacturing and services zones. For each eligible deepwater well, government support is limited to half of drilling expenses or ₹675 crore, depending on which amount is smaller. A single deepwater exploratory well is estimated to cost about $125 million to $150 million. The risk-sharing approach is intended to encourage investment, accelerate exploration and develop offshore hydrocarbon resources. The scheme’s approval was not linked to the Hormuz crisis in the announcement outlining the program. If exploration succeeds, India aims to lift yearly domestic hydrocarbon output to 80 million metric tonnes of oil equivalent from roughly 62 million. It also estimates that the program could add more than 600 million tonnes of oil equivalent to India’s hydrocarbon reserves, expanding the resource base from 1.6 billion tonnes of oil equivalent to 2.2 billion tonnes of oil equivalent. The exploration program is a long-term measure and will not immediately replace disrupted crude imports. India is separately expanding its strategic petroleum reserves, which provide short-term protection against supply interruptions. Existing facilities at Visakhapatnam, Mangaluru and Padur have combined capacity of 5.33 million metric tonnes. A separate plan would add 6.5 million metric tonnes at Chandikhol and Padur, which could provide about 12 days of supply. The storage expansion and offshore exploration scheme address different parts of India’s energy exposure. Strategic reserves are intended for emergency coverage, while new exploration seeks to increase domestic supply over time. The moves follow steps by Indian refiners to increase liquefied petroleum gas production as Gulf shipping risks persist. [India’s refiners have raised LPG output as Hormuz disruptions threaten supply routes](). ## Links in this article - [India’s refiners have raised LPG output as Hormuz disruptions threaten supply routes](https://www.tokenpost.com/news/business/23622)