India Advances Multi-Pillar Energy Security Strategy with Reserve Expansion and Deepwater Exploration Plans

India is moving towards a broader energy security framework as shifting geopolitical dynamics and evolving global energy markets place renewed focus on supply stability. 

The government is preparing a multi pronged strategy that includes expanding strategic petroleum reserves, increasing domestic hydrocarbon exploration and developing the country into a refining and petrochemicals hub. 

The proposed measures aim to strengthen long term energy resilience while supporting domestic production and infrastructure development.

Strategic Reserve Expansion Plans

As part of the proposed policy roadmap, the government plans to increase strategic crude oil reserves by an additional 6 million metric tonnes (MMT). The objective is to move towards an overall energy buffer capable of covering approximately 90 days of consumption.

India currently maintains around 5.33 MMT of strategic reserves, equivalent to roughly 10 days of imports. Additional storage facilities under development, combined with refinery inventories, already provide an estimated reserve cover of about 80 days. The proposed expansion is intended to enhance preparedness against supply disruptions and market volatility.

Mission Samudra Manthan and Deepwater Exploration

A key pillar of the strategy involves launching ‘Mission Samudra Manthan’, a national deepwater exploration initiative designed to strengthen domestic hydrocarbon production.

The mission aims to increase exploratory drilling activity from about 30 wells annually to at least 100 wells per year over a five-year period beginning in 2026–27. A portion of these wells will focus on deepwater regions, alongside additional stratigraphic drilling programmes.

Policy targets include raising hydrocarbon reserve accretion levels and expanding domestic crude oil and natural gas output over the coming decades, reducing reliance on imports.

Domestic Production Targets

Under the proposed framework, India intends to increase crude oil production from current levels to higher output milestones by 2030 and further by 2047. Natural gas production is also expected to rise significantly within the same timeframe.

Alongside exploration activity, the government is considering schemes to strengthen domestic manufacturing capacity for exploration equipment such as drilling rigs and specialised logging tools, supporting localisation within the energy value chain.

Refining and Petrochemicals Hub Strategy

Another major component of the plan focuses on positioning India as a global refining and petrochemicals centre. Policymakers aim to expand refining capacity to approximately 400 million metric tonnes per annum (MMTPA) by 2047.

To support integration between refining and petrochemical operations, the government is evaluating administrative changes that could transfer responsibility for petrochemicals to the Ministry of Petroleum and Natural Gas. The move is intended to streamline policy execution and investment planning.

PSU Consolidation and Governance Reforms

The strategy also includes measures to strengthen public sector oil and gas companies by enabling consolidation and operational autonomy. Proposed reforms involve revising leadership appointment processes, enhancing board decision-making powers and easing investment limits to encourage faster project execution.

Authorities are also exploring revised guidelines aimed at attracting experienced leadership and improving governance structures within major energy public sector undertakings.

Ease of Doing Business Measures

Improving the investment climate forms another part of the energy security agenda. Planned steps include rationalising environmental inspection procedures and implementing pending recommendations designed to accelerate approvals and reduce administrative delays in exploration and infrastructure projects.

These reforms are expected to support private and public investment across upstream and downstream energy segments.

Read More: India Reviews Policy Direction on GM Mustard Crop Amid Ongoing Regulatory Debate.

Conclusion

India’s proposed energy security strategy reflects a coordinated effort to balance domestic production growth, infrastructure expansion and supply resilience. By combining reserve augmentation, exploration initiatives and refining capacity development, policymakers aim to reduce external vulnerabilities while strengthening the country’s long-term energy framework. The effectiveness of the plan will depend on execution timelines, regulatory coordination and sustained investment across the energy sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.