In the last five years, India’s overseas oil and gas production has dropped significantly and this has raised new questions about energy security and its investment in foreign oil and gas fields.
According to government data, production from nearly four dozen overseas assets where Indian energy companies hold stakes fell by 12.3% in five years. Overseas production dropped from 21.9 million metric tonnes of oil equivalent (MMTOE) in 2020-21 to 19.2 MMTOE in 2025-26
Overseas oil production falls as domestic output rises
The decline appears to be even more noticeable when overseas production is compared with India’s domestic oil and gas output.
In 2020-21, India produced about 59.2 MMTOE of oil and gas domestically. In the same year, its overseas assets produced approximately 21.9 MMTOE, or some 37% of domestic production.
By 2025-26, domestic production had increased to 62.7 MMTOE. Overseas production dropped to 19.2 MMTOE.
As a result, overseas production fell to about 30.7% of India’s domestic output.
That means that while India was able to increase domestic oil and gas output, output from assets overseas moved in the opposite direction.
Why Overseas Oil and Gas Assets Matter?
The fall comes at a time when India is still turning to imports to meet its energy needs.
A parliamentary panel has also recommended investing in overseas oil and gas assets to strengthen India’s energy security. India imports more than 88% of its crude oil and around 50% of its natural gas, according to a report cited in the article.
The Committee on Estimates has said that overseas investments are important because India remains a net importer of oil and gas.
With the energy demand rising, having production assets in other countries is beneficial to Indian companies and therefore can allow for further supplies to be made available to them and diversify their energy sources.
Indian Companies Have Assets Across 21 Countries
Indian state-run oil and gas companies own 45 overseas assets in 21 countries according to the parliamentary report.
These include:
14 assets under exploration
7 assets under development
3 pipeline projects
Indian companies have investments in Russia, Azerbaijan, Brazil, Canada, Colombia, Gabon, Indonesia, Iraq, Iran, Libya, Mozambique, Myanmar, Nigeria, Oman, South Sudan, Syria, the UAE, the US, Venezuela and Vietnam.
Among the major players is ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation. Other Indian state-owned companies with overseas investments include Indian Oil Corporation, Bharat Petroleum Corporation, Oil India and GAIL India.
OVL Production Also Declines
OVL is still one of the biggest Indian companies involved in overseas oil and gas production.
According to its 2025-26 annual report, OVL has 30 assets across five continents and 14 countries.
But production was also down during the year.
OVL’s oil and gas production fell by around 6%, from 10.28 MMTOE in 2024-25 to 9.67 MMTOE in 2025-26.
Industry experts have connected the decline to geopolitical events affecting a variety of the company’s overseas operations.
Russia is still a major production center.
Russia continues to play an important role in OVL’s overseas production.
The company’s Russian assets, including Vankor and Sakhalin-1, account for the largest share of its production.
But geopolitical shifts in different regions have an impact on the operations and output of overseas energy assets. In reality, Indian companies have to deal with oil and gas investments across different countries.
What the Decline Means for India
The decline in overseas oil and gas production comes at a time when India is in need of it.
The country's energy demand is rising and its dependence on imported crude oil is high. Production from Indian-owned overseas assets has declined over the past five years.
The latest results could thus renew the focus on overseas energy investments, domestic production and long-term energy security.
India needs to increase domestic oil and gas production, but also overseas investments for reliable energy supply despite geopolitical and operational risks.
Key Takeaway
India’s overseas oil and gas production has fallen 12.3% in five years, from 21.9 MMTOE in 2020-21 to 19.2 MMTOE in 2025-26. Meanwhile, domestic production increased from 59.2 MMTOE to 62.7 MMTOE.
The widening gap has brought into sharp focus the overseas energy assets of India and the need for energy security in the country at present, which relies heavily on oil and gas imports.