India Diversifies Crude Oil Sources from 27 to 41 Countries Amid Hormuz and Red Sea Disruptions
The Union Ministry of Petroleum and Natural Gas said India has widened its crude oil supply network from 27 countries to 41 countries to protect its energy security.
India is importing more than 5 million barrels of oil per day and exporting about 1 million barrels per day (mostly as refined fuels), helped by its growing refining capacity.
The Ministry cited disruptions around the Strait of Hormuz and emerging tensions in the Red Sea as reasons to diversify. It noted that a disruption on a distant shipping route can change the costs of an Indian factory and the budget of an Indian household.
Crude purchases are made by oil companies on commercial terms (price and availability); the government helps build energy relationships.
To raise domestic production, the government is counting on the Samudra Manthan scheme for deep-sea oil and gas exploration over the next three years, including resources for drilling about 150 wells.
Strait of Hormuz: Geography and Strategic Significance
The Strait of Hormuz is a narrow sea passage between Iran in the north and Oman (its Musandam peninsula) in the south. It connects the Persian Gulf to the Gulf of Oman, which opens into the Arabian Sea. It is the only sea exit for oil and gas from Gulf producers like Saudi Arabia, Iraq, Kuwait, Qatar and the UAE, which is why it is called the world's most important oil chokepoint.
The disruptions around Hormuz in 2026 are the main reason the government stressed spreading crude purchases across 41 countries, including suppliers outside the Gulf whose oil does not have to pass through this strait.
Bab-el-Mandeb Strait and Red Sea as a Maritime Chokepoint
The Bab-el-Mandeb is a narrow strait at the southern end of the Red Sea. It lies between Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African side (the Horn of Africa). It joins the Red Sea to the Gulf of Aden and the Arabian Sea. Together with the Suez Canal at the northern end of the Red Sea, it forms the shortest sea route between Asia and Europe.
The Ministry pointed to fresh tensions in the Red Sea as a second risk, along with Hormuz. If the Bab-el-Mandeb route is disrupted again, oil cargoes and India's exports to Europe would have to take the long route around Africa, which is why India keeps widening its list of suppliers.
National Deep Water Exploration Mission (Samudra Manthan)
The National Deep Water Exploration Mission, called "Samudra Manthan", is India's mission to search for oil and natural gas in the deep and ultra-deep waters of the sea off its coasts. It was announced on 15 August 2025 and approved by the Union Cabinet on 31 July 2026 as the "Samudra Manthan" (National Offshore Exploration Scheme), with an outlay of ₹84,084 crore until 2030-31. Its aim is to find new oil and gas reserves at home so that India depends less on imports.
Diversifying suppliers reduces the risk from any one region, but it does not reduce India's dependence on imports. That is why the Ministry tied its message to Samudra Manthan, saying it should help raise domestic oil and gas output over the next three years, with resources planned for drilling around 150 wells.
- India's crude oil supply sources: from 27 to 41 countries
- Oil imports: more than 5 million barrels per day; exports (mainly refined products): about 1 million barrels per day
- Strait of Hormuz: about 20 million barrels per day of oil in 2024 (about 20% of world consumption)
- Bab-el-Mandeb: between Yemen and Djibouti/Eritrea; diversion via Cape of Good Hope adds about 3,500 nautical miles
- Samudra Manthan outlay: ₹84,084 crore (to 2030-31); 60 deepwater wells funded; ONGC targets about 150 deepwater wells over seven years
- India's crude import dependence: about 88.7% in 2025-26 (provisional)
- Remarks made at the Pathways to Viksit Bharat Conclave, Shri Ram College of Commerce, New Delhi