India Needs Nearly 2,000 Oil & Gas Exploration Licences to Achieve Energy Security: Vedanta Group Chairman

India Needs Nearly 2,000 Oil & Gas Exploration Licences to Achieve Energy Security: Vedanta Group Chairman

New Delhi, Feb 09: In the face of rising geopolitical volatility and growing energy demand, India must significantly scale up domestic oil and gas exploration to secure its energy future, said Mr Anil Agarwal, Chairman, Vedanta Group, calling for nearly 2,000 active exploration licences across the country.

Highlighting India’s heavy dependence on imports, Agarwal noted that the country currently imports nearly 90% of its oil and gas requirements, leaving it strategically vulnerable despite being surrounded by sea on three sides. With India expected to remain the world’s fastest-growing oil and gas market for at least the next two decades, he stressed that boosting domestic production is no longer optional but critical.

“India is vulnerable because we import 90% of our oil and gas. In hostile times, our sea routes can be blockaded. Energy independence is a strategic necessity,” Agarwal said.

Vast Resources, Untapped Potential

India is endowed with an estimated 300 billion barrels equivalent of hydrocarbon resources, more than 30 times the potential of Guyana, Agarwal pointed out. In addition, Indian professionals account for nearly 10% of the global oil and gas talent pool, giving the country a strong human capital advantage.

However, the core challenge remains exploration. “Exploration is the heart of this business,” Agarwal said, citing the United States as an example where opening up exploration to entrepreneurs transformed the country from import dependence to energy self-sufficiency.

Drawing from Vedanta’s experience through Cairn Oil & Gas, Agarwal noted that India can produce hydrocarbons at nearly half the cost of imports. The sector has already contributed over $40 billion to the national exchequer and delivered 1.3 billion barrels of production, despite operating without sector-specific incentives such as Production Linked Incentives (PLI).

Regulatory Clarity Key to Investor Confidence

A major deterrent to investment, Agarwal said, is regulatory unce