Indian Oil Chairman Arvinder Singh Sahney emphasised on Friday that “the future of India’s energy landscape hinges on enhancing domestic production while minimising import dependency.” In a message shared on X, he highlighted the recent contract awards from the Discovered Small Field (DSF) Bid Round IV and the Samudra Manthan Mission. He described these initiatives as “crucial milestones in unlocking India’s hydrocarbon potential, drawing in private investments, and bolstering local production.”

Sahney referred to these two initiatives as “a pivotal advancement towards energy security and the aspiration of Viksit Bharat,” attributing their success to the guidance of Prime Minister Narendra Modi.

A day later, Minister for Petroleum and Natural Gas Hardeep Singh Puri participated in the DSF-IV contract awards and unveiled the operational guidelines for Samudra Manthan. He echoed similar sentiments on X, emphasising that India is poised to account for approximately 30% of the global increase in energy demand over the next twenty years. However, he pointed out that a staggering 88% of the country’s crude oil and nearly 50% of its natural gas are still imported. Puri asserted that the path forward lies in the mantra to “produce more and depend less.”

The area designated for active exploration is projected to expand to 19%

Puri tied this to a run of policy changes. He cited a new Oilfields (Regulation and Development) Act, new Petroleum and Natural Gas Rules, a new framework contract and the Samudra Manthan Mission. With these, he said, India’s exploration and production (E&P) sector “is gaining momentum.”

Puri linked this progress to a series of transformative policy reforms. He mentioned the introduction of the new Oilfields (Regulation and Development) Act, updated Petroleum and Natural Gas Rules, a fresh framework contract, and the ambitious Samudra Manthan Mission. He expressed optimism that these initiatives are propelling India’s exploration and production (E&P) sector forward. age licensing policy (OALP) are allocated. Notably, 81% of the area under active exploration has been awarded since 2014. The ministry aims to achieve 1 million sq km of exploration acreage by 2030.

A total of 55 exciting discoveries are available through the DSF-IV initiative

The DSF-IV round kicked off on April 15, 2025, unveiling an impressive array of 55 discoveries spread across nine contract areas within five sedimentary basins, totalling 6,133.02 square kilometres, as noted by Puri. Among these, three onshore areas accounted for 1,120.91 square kilometres, while the six offshore areas spanned 5,012.11 square kilometres. Puri estimated the in-place volume of these discoveries to be around 260 million tonnes of oil equivalent (MMTOE).

The round attracted nine new players from the private sector. Puri remarked that this participation demonstrated that “reform truly matters when it enhances the conditions under which companies can invest, make technical choices, and bring fields into production.”

A contract area has been awarded to Oilmax Energy, which is the parent company of Asian Energy Services. Recently, Oilmax entered into a revenue sharing contract (RSC) with the government for the contract area GK/OSDSF/GKOSN/2025, as reported by Asian Energy Services. The Directorate General of Hydrocarbons (DGH) granted this area to them on August 31. According to Asian Energy Services, Oilmax possesses a 50% stake and is designated as the operator.

The ambitious Samudra Manthan initiative, valued at ₹84,084 crore

Puri articulated the two initiatives as components of a unified strategy. “DSF-IV and Samudra Manthan represent two integral parts of a comprehensive approach to harness our discoveries and investigate the uncharted territories that lie ahead,” he remarked. He further explained that under Samudra Manthan, the government aims to tap into offshore resources by conducting new seismic surveys, sharing drilling expenses for approximately 60 deepwater and ultra-deepwater wells, and establishing shared offshore infrastructure.

Prime Minister Modi initially unveiled the National Deep Water Exploration Mission during his Independence Day speech in 2025, designating it as Samudra Manthan. The Union Cabinet subsequently endorsed it on July 31, branding it the National Offshore Exploration Scheme, with a financial commitment of Rs 84,084 crore through FY2030-31.

The government anticipates that the initiative will contribute an impressive 600 MMTOE of reserves, contingent upon successful exploration efforts. This would elevate the resource base from 1.6 billion tonnes of oil equivalent to a remarkable 2.2 billion. Officials stated that the objective is to boost annual domestic production from approximately 62 MMTOE to 80 MMTOE.

The crude import expenses surged by 47% in September

India’s yearly expenditure on crude oil imports reached approximately USD 144 billion, translating to around Rs 13 lakh crore. A government statement emphasised, “Recent global developments have underscored the critical importance of consistent energy access.” It further noted that increased production from the initiative could potentially reduce crude import costs by nearly Rs 1 lakh crore annually.

The conflict involving the US, Israel, and Iran, which commenced on February 28, effectively closed the Strait of Hormuz. Additionally, threats to maritime traffic through the Bab-el-Mandeb strait exacerbated the disruption of supplies from West Asia.

The impact of rising costs is evident in the import figures. In September, India’s crude import expenses surged by 47%, reaching USD 15.4 billion, as reported by the Petroleum Planning and Analysis Cell (PPAC). Despite this significant increase in costs, import volumes saw a modest rise of only 7%, climbing to 21.7 million tonnes from 20.3 million tonnes the previous year. The Indian crude basket, a benchmark created from Oman/Dubai and Brent prices, averaged USD 116.09 per barrel in September, a stark contrast to USD 69.61 a year prior. From April to September, the total crude import expenditure escalated by 46.4%, totalling USD 90.6 billion.

Fortunately, physical supplies from the region have rebounded. In September, imports of West Asian crude reached approximately 2.8 million barrels per day, returning to levels seen before the conflict. This region represented around 54% of India’s crude imports during that month.

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