India’s Crude Production Slumps as Offshore Exploration Push Begins

Oil and Natural Gas Minister Hardeep Singh Puri informed Parliament that aging fields remain the primary culprit behind the downturn. While state-owned Oil and Natural Gas Corporation managed to limit its individual production loss to 2% by employing Enhanced and Improved Oil Recovery techniques, the broader national trend remains downward.

To reverse this, the federal government recently launched the National Offshore Exploration Scheme. Backed by $8.8 billion in support through 2031, the initiative targets the Krishna-Godavari, Cauvery, Mahanadi, and Andaman basins. By covering up to 50% of drilling costs for deepwater wells—which can cost upwards of $150 million each—officials hope to de-risk investments in these frontier regions. Alongside this exploration drive, the country is expanding its strategic storage capacity to insulate the economy from global supply shocks.