{"id":6705,"date":"2026-03-25T17:18:21","date_gmt":"2026-03-25T11:48:21","guid":{"rendered":"https:\/\/www.businessupturn.com\/trade-policy\/?p=6705"},"modified":"2026-03-25T17:18:21","modified_gmt":"2026-03-25T11:48:21","slug":"iran-war-pushes-india-to-boost-domestic-oil-drilling-with-20-billion-plan","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/trade-policy\/iran-war-pushes-india-to-boost-domestic-oil-drilling-with-20-billion-plan\/6705\/","title":{"rendered":"Iran war pushes India to boost domestic oil drilling with $20 billion plan"},"content":{"rendered":"
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Rising tensions in West Asia, especially the ongoing Iran conflict, have pushed India to accelerate its efforts to reduce dependence on imported oil. State-run Oil and Natural Gas Corporation<\/span><\/span> (ONGC) has launched a massive $20 billion deepwater drilling programme aimed at cutting India\u2019s heavy oil import bill.<\/p>\n

India currently imports nearly 85% of its energy needs, spending around $150 billion every year on crude oil. This accounts for nearly 5\u20136% of the country\u2019s GDP. A large portion of these imports passes through the vulnerable Strait of Hormuz<\/span><\/span>, making supplies highly sensitive to geopolitical conflicts like the Iran war.<\/p>\n

To address this risk, ONGC has announced an aggressive exploration plan under \u201cMission Samudra Manthan,\u201d targeting around 100 new oil wells per year more than triple the current pace of 30 wells annually. The goal is to replace 10\u201315% of oil imports within the next five years, which could save India an estimated $20\u201330 billion in foreign exchange every year.<\/p>\n

The urgency of the plan is clear from ONGC\u2019s global tender, which requires companies to mobilize drilling rigs within just 80 days. Key exploration areas include the Krishna-Godavari Basin<\/span><\/span> and ultra-deepwater blocks near the Andaman Islands<\/span><\/span>, where large oil and gas discoveries are expected.<\/p>\n

India\u2019s current energy import bill includes about $120 billion for crude oil and another $30 billion for LNG and petroleum products. Even limited success such as discovering 2\u20133 major oil fields could reduce import dependence by around 12%. This would also help stabilize the Indian rupee, which often weakens by 5\u20137% during global oil price shocks.<\/p>\n

To support this effort, ONGC is partnering with global energy companies such as BP<\/span><\/span>, ExxonMobil<\/span><\/span>, TotalEnergies<\/span><\/span>, and Petrobras<\/span><\/span>. These collaborations will bring in advanced deepwater drilling technology while ensuring that most of the revenue remains within India.<\/p>\n

Unlike oil imports, which result in a continuous outflow of dollars, domestic production has wider economic benefits. The drilling push is expected to generate around 50,000 direct jobs and support industries like refining, pipelines, and logistics. It could also generate $5\u20137 billion annually in tax revenues and reduce government spending on subsidies, which currently stands at about \u20b925,000 crore for LPG and fertilizers.<\/p>\n

India\u2019s trade deficit, estimated at $250 billion in FY25, is heavily driven by imports, with oil accounting for nearly 30% of total merchandise imports. Increasing domestic production is therefore seen as a key step toward improving the country\u2019s trade balance.<\/p>\n

In parallel, India is expanding its Strategic Petroleum Reserves to cover up to 90 days of demand. This will help manage short-term supply disruptions, while increased domestic production will provide long-term energy security.<\/p>\n

The government has also opened up new offshore areas for exploration under the Open Acreage Licensing Policy, covering around 1.9 lakh square kilometres across 13 basins. Previously restricted regions such as the Kerala-Konkan coast and Andaman areas have now been made available for drilling.<\/p>\n

ONGC\u2019s $20 billion investment the largest in India\u2019s upstream energy sector is expected to reduce dependence on imports, save up to $25 billion in foreign exchange by 2030, and create nearly 2 million indirect jobs.<\/p>\n

As global energy markets become more unstable due to conflicts like those in Ukraine and Iran, India\u2019s push for domestic oil production is being seen as a strategic move to protect its economy and ensure long-term energy security.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Rising tensions in West Asia, especially the ongoing Iran conflict, have pushed India to accelerate its efforts to reduce dependence\u2026<\/p>\n","protected":false},"author":482,"featured_media":6706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,1,52],"tags":[4079,4080,4083,383,1245,4084,4085,4078,4077,4082,4081,1486,3704,2364,3639],"class_list":["post-6705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","category-news","category-trade-relations","tag-andaman-islands","tag-bp","tag-deepwater-drilling","tag-energy-security","tag-exxonmobil","tag-forex-savings","tag-india-economy","tag-krishna-godavari-basin","tag-oil-and-natural-gas-corporation","tag-oil-imports","tag-petrobras","tag-strait-of-hormuz","tag-strategic-petroleum-reserves","tag-totalenergies","tag-trade-deficit"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/6705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/users\/482"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/comments?post=6705"}],"version-history":[{"count":2,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/6705\/revisions"}],"predecessor-version":[{"id":6708,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/6705\/revisions\/6708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/media\/6706"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/media?parent=6705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/categories?post=6705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/tags?post=6705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}