India Bets on Offshore Drilling to Buffer Against Global Oil Shocks

Abhijit Majumder, Director of Finance at Oil India Limited, warned that supply chain disruptions in critical energy corridors now pose an immediate threat to national stability. To counter this, the government has introduced the National Offshore Exploration Scheme, which offers to cover up to 50% of the costs for deepwater exploratory wells through 2031. This risk-sharing model aims to unlock potential in the Krishna-Godavari, Cauvery, Mahanadi, and Andaman regions, where individual wells can cost as much as $150 million.

Beyond exploration, the government is expanding its strategic storage capacity to build a buffer against future supply shocks. As the world’s third-largest crude importer, India is pivoting toward a strategy that combines aggressive domestic extraction with increased reserves to mitigate the impact of regional crises that remain beyond its control.