New Delhi is updating its regulations to bring investment into energy projects

ndian state-owned corporations are seeking tie-ups with international oil companies once the government has approved legislation which aims to bring investment and advanced technology to oil and gas exploration projects. 

Oil India Limited chairman and managing director Ranjit Rath told Moneycontrol on Monday that the industry is waiting for the approval of the Oilfields Regulation and Development (ORD) Amendment Bill, which was cleared by India's upper house of parliament in December and is set to be signed off by the lower house. 

Oil minister Hardeep Singh Puri earlier stated that India's growing economy would rely on oil and gas for another two decades, stressing the importance of securing long-term availability of energy resources. "We need to bring this legislation here to provide a win-win confidence not only to our own operators but also to foreign investors so that they can come and do business here with a view to benefit everyone," he said.

The development comes as India is ramping up efforts to strengthen its energy security. Last month, the country launched its largest round of oil and gas blocks auctions, offering 25 blocks covering 191,986 square kilometers, mostly in offshore regions, according to a PTI report. It was the tenth round of bidding, with over 150 blocks auctioned since 2017.

While India is aiming to boost domestic exploration, the country has already emerged as the biggest exporter of refined oil products to the EU. Indian refiners have ramped up output in the past two years, after New Delhi opted to purchase discounted Russian oil despite Western pressure. In a report last year, the Finland-based Centre for Research on Energy and Clean Air (CREA) said India's fuel exports to Europe have soared. "In the first three quarters of 2024, exports to the EU from the Jamnagar, Vadinar and new Mangalore refinery - which are increasingly reliant on Russian crude - saw a 58% year-on-year rise," the report said. 

India has navigated a delicate diplomatic balance in the Ukraine conflict, managing its close relationships with the US and Europe while simultaneously strengthening its strategic ties with Russia, which has become India's largest oil supplier. 

Moscow has made the largest foreign investment in India's refining sector to date, with a consortium led by Russian state-owned Rosneft Group buying a 98% stake in Essar Oil, one of India's largest refineries, for $12.9 billion in 2017. Subsequently, it was restructured as Nayara Energy, in which Rosneft has a 49.13% stake. The company now oversees the country's second-largest single-site refinery in the western state of Gujarat, with an annual capacity of 20 million tons.

READ MORE: Indian crude imports from Russia fall sharply

In December last year, Indian privately-owned Reliance Group, operating the largest refinery in Gujarat, inked a ten-year deal with Rosneft for the shipment of 500,000 barrels per day of various crude grades. Worth roughly $13 billion a year at current prices, the energy deal is the biggest-ever between Moscow and New Delhi.