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INDIA'S MAJOR ENHANCEMENT FOR MARITIME OIL AND GAS EXPLORATION
DETAIL INFORMATION
The Indian government aims to lower its 90% dependence on imported crude by allocating $8.8 billion to enhance private sector maritime oil and gas exploration. India imports 50% of its gas, and its significant reliance on imported hydrocarbons has been emphasized by the ongoing closure of the Strait of Hormuz.
A significant portion of India's oil and gas imports currently originates from the Middle East. While the government announcement regarding Samudra Manthan did not focus on this element of the plan, raising domestic oil and gas production could reduce reliance on Russian exports, which have become increasingly difficult for Indian refiners to manage due to US sanctions.
Through Prime Minister Narendra Modi’s Samudra Manthan initiative, the National Offshore Exploration Scheme will fund 50% of the expenses for each deep sea well drilled (limited to $70 million per well). Under the plan, maritime regions that were formerly off-limits to explorers for national security reasons will now be accessible. The exploration initiative will seek opportunities throughout India's Exclusive Economic Zone, spanning from the Arabian Sea in the west to the Bay of Bengal in the east, and including the Andaman Islands near Myanmar's coast. Expanded oilfield support activities are expected to be distributed across various Indian ports.