Israel-Iran conflict: ‘Diversified import basket, comfortably placed for fuel supply needs’, says minister Hardeep Puri

India's Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has assured that the country is comfortably placed in terms of fuel supply amid growing tensions in the Middle-East.

On June 16, the union minister reviewed India's petroleum supply situation with top ministry officials and executives from state-run oil companies amid volatile oil markets due to the Israel-Iran conflict.

India ‘comfortably placed to meet fuel supply needs’, says Puri

In a post on social medai platform X (formerly Twitter), Puri wrote: “As oil is on the boil, all eyes are on the ball… In the increasingly volatile geopolitical situation, reviewed the petroleum products supply situation with petroleum ministry officials and our PSU OMCs.”

“Under the visionary leadership of PM Modi, we have diversified our import basket substantially and are comfortably placed to meet our fuel supply needs,” he added.

India exploring domestic oil production — updates

• Puri's meeting included Petroleum ministry officials and representatives from major public sector oil marketing companies (OMCs) such as Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL).
• Speaking to ANI, the minister outlined several government measures for exploration and production, adding that the project in the Andamans is pointing to “good news” and may end up becoming India's ‘Guyana moment’. Notably, India is looking to ramp up its own traditional fossil-based energy production, with the latest push being to dig deep in the Andaman region.

• “India has 3.5 million square kilometres of sedimentary basin, but it never explored beyond eight per cent area, keeping a large expanse of sea beds untapped and unexplored. One of the decisions which we took was that 1 million square kilometres of that sedimentary basin, which was no-go area, has suddenly been made available for E&P,” Puri added.
• So far in the nine round of open acreage licensing policy, 38 per cent of the bids came in that 1 million square kilometres and the Minister expects that in the next round — for which work is going on right now — will attract more than 75 per cent of the bids, the report said.
• “We've also issued some of the largest bids on offer anywhere — something like 2.5 lakh square kilometres of area has been offered out on bidding,” the minister added.

• According to Puri, India has the potention of around 42 billion tonnes of oil and gas equivalent in its sedimentary basins, but exploring offshore reserves are capital extensive, which is why it took so much time for India to tap the untapped potential under its seas. “An onshore well costs $4 million on average and an offshore well costs about $100 million,” he supplemented

India has extensive trade relations with both Israel and Iran, exporting goods worth $1.24 billion to Iran in FY25, and imported goods worth $441.9 million. Further, with Israel, the trade is even bigger — $2.15 billion in exports and $1.61 billion in imports.

(With inputs from ANI)