The Union Cabinet has approved an ambitious ₹84,084 crore National Offshore Exploration Scheme, popularly known as the Samudra Manthan Scheme, to accelerate India’s deepwater and ultra-deepwater oil and natural gas exploration.
The programme will be implemented until FY 2030-31 and aims to reduce exploration risks, attract private investment, boost domestic hydrocarbon production, and strengthen India’s long-term energy security.
Why Has the Government Launched the Samudra Manthan Scheme?
India continues to rely heavily on imported crude oil despite possessing significant untapped offshore hydrocarbon reserves.
Deepwater and ultra-deepwater exploration offers enormous potential but comes with several challenges:
- Extremely high exploration costs
- Advanced drilling technology requirements
- Long project timelines (5–10 years)
- High geological uncertainty
- Significant financial risks for investors
To overcome these barriers, the Government has adopted a risk-sharing model, enabling both public and private companies to participate more confidently in offshore exploration.
India’s Untapped Offshore Hydrocarbon Potential
The Government has identified several promising offshore sedimentary basins that may hold vast reserves of oil and natural gas.
Major exploration regions include:
- Krishna-Godavari Basin
- Cauvery Basin
- Mahanadi Basin
- Andaman Offshore Region
A single exploratory well in these frontier regions can cost between $125 million and $150 million, making government support essential for expanding exploration activities.
Key Objectives of the Samudra Manthan Scheme
The scheme has been designed with multiple strategic objectives:
- Increase domestic crude oil and natural gas production.
- Reduce India’s dependence on imported hydrocarbons.
- Encourage private sector participation.
- Promote advanced offshore exploration technologies.
- Develop supporting offshore infrastructure.
- Strengthen India’s long-term energy security.
Components of the ₹84,084 Crore Outlay
The approved financial package has been divided into four major components.
1. Seismic Data Acquisition – ₹28,534 Crore
This component focuses on collecting high-quality seismic data to identify potential oil and gas reserves beneath the seabed.
Accurate geological mapping significantly improves exploration success rates and reduces drilling risks.
2. Offshore Infrastructure Development – ₹10,000 Crore
The Government will establish common offshore infrastructure hubs that can be shared by multiple exploration projects.
These facilities will help:
- Reduce project costs
- Improve operational efficiency
- Speed up commercial production
3. Manufacturing & Service Zones – ₹2,000 Crore
Dedicated manufacturing and service hubs will be developed to promote:
- Indigenous production of offshore equipment
- Localisation of critical technologies
- Growth of India’s oilfield services sector
- Employment generation
4. Deepwater Exploration Wells – ₹43,200 Crore
The largest share of funding has been allocated for drilling 60 deepwater exploration wells.
Under this component:
- Government support will cover up to 50% of eligible drilling costs.
- Financial assistance will be capped at ₹675 crore per well.
This is expected to significantly reduce investment risks for exploration companies.
Why Is Deepwater Exploration Important?
India’s existing oil and gas fields are witnessing a natural annual production decline of around 6–7%.
Without discovering new reserves, domestic production will continue to fall, increasing dependence on imported crude oil.
Deepwater exploration is therefore essential to:
- Replace declining production
- Discover new hydrocarbon reserves
- Ensure long-term energy availability
Current Status of India’s Deepwater Exploration
India’s major exploration companies have already begun expanding offshore activities.
ONGC
- Plans to drill 150 deepwater wells over the next seven years.
- Estimates a deepwater hydrocarbon potential of approximately 5,600 Million Metric Tonnes of Oil Equivalent (MMTOE).
Oil India Limited (OIL)
- Conducting exploration in the Andaman offshore region.
- Has reported natural gas discoveries in Vijayapuram-2 and Vijayapuram-3 exploratory wells.
Open Acreage Licensing Policy (OALP)
To attract greater private investment, offshore exploration blocks continue to be auctioned under the Open Acreage Licensing Policy (OALP).
- OALP Round 10
- 1 Deepwater Block
- 12 Ultra-Deepwater Blocks
- OALP Round 11
- 1 Deepwater Block
- 4 Ultra-Deepwater Blocks
These auctions are expected to expand exploration activities across India’s offshore basins.
Expected Benefits of the Scheme
If exploration activities prove successful, the Samudra Manthan Scheme aims to deliver significant economic and strategic gains.
Increased Hydrocarbon Production
Domestic production is expected to increase from approximately 62 MMTOE to nearly 80 MMTOE annually.
Expansion of Resource Base
India’s hydrocarbon reserves could increase from around 1.6 billion tonnes of oil equivalent to nearly 2.2 billion tonnes of oil equivalent.
Reduced Import Dependence
Higher domestic production has the potential to reduce crude oil imports by nearly ₹1 lakh crore every year, significantly improving India’s energy security and reducing pressure on foreign exchange reserves.
Conclusion
The Samudra Manthan Scheme marks one of India’s largest investments in offshore hydrocarbon exploration. By sharing exploration risks, encouraging private participation, expanding offshore infrastructure, and promoting indigenous manufacturing, the initiative seeks to unlock India’s vast deepwater energy resources.
If implemented successfully, the programme can strengthen India’s energy independence, reduce crude oil imports, generate employment, and support long-term economic growth.
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