Cabinet Approves 'Samudra Manthan' – National Offshore Exploration Programme

The Union Cabinet has approved the 'Samudra Manthan – National Offshore Exploration Programme' with a total outlay of ₹84,084 crore for implementation until FY 2030–31. The programme aims to accelerate the exploration and development of India's offshore hydrocarbon resources, strengthen energy security, increase domestic oil and natural gas production, and reduce dependence on imports.

Samudra Manthan (National Offshore Exploration Scheme)

¨     Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas (MoPNG) approved by the Union Cabinet.

¨     The Scheme translates the Prime Minister’s vision, articulated from the Red Fort during the Independence Day address in 2025, of a modern-day Samudra Manthan to unlock India’s vast offshore energy potential.

¨     It marks a landmark step towards strengthening India’s energy security, accelerating domestic exploration and production, promoting technological leadership and advancing the vision of Viksit Bharat.

¨     The Scheme encompasses a comprehensive set of interventions across the entire offshore exploration value chain, creating an integrated ecosystem to accelerate offshore exploration and production in the country.

Key Features of the Scheme

¨     Offshore Seismic Data Acquisition: Large-scale acquisition, processing and interpretation of high- quality seismic data, along with scientific drilling in frontier offshore basins to improve geological understanding.Offshore data acquisition has been allocated ₹28,534 crore.

¨     Deepwater and Ultra-Deepwater Exploratory Drilling: Accelerated drilling of around 60 deepwater and ultra-deepwater exploratory wells, with Government support of up to 50% of eligible drilling cost, subject to a ceiling of ₹675 crore per well.₹43,200 crore has been allocated for exploratory drilling.

¨     Common Offshore Infrastructure: Development of common offshore production and evacuation infrastructure to facilitate commercialisation of discoveries. Shared infrastructure is expected to improve project viability by reducing development costs, with an allocation of ₹10,000 crore.

¨     Oil & Gas Manufacturing and Services Zones: Establishment of integrated Oil & Gas Manufacturing and Services Zones to promote domestic manufacturing and localisation of critical offshore equipment and specialised services. The initiative will strengthen indigenous manufacturing under Make in India and Atmanirbhar Bharat, with an allocation of ₹2,000 crore.

¨     Integrated Offshore Exploration Ecosystem: The Scheme includes dedicated provisions for digital programme management, capacity building, technology adoption, stakeholder engagement, and international outreach.These measures aim to create an integrated ecosystem for offshore exploration and production in the country.

Need for the Scheme

¨     India’s dependence on imported crude oil has increased from 77% to about 88% over the past decade.

¨     Nearly 50% of India’s natural gas requirement is imported.

¨     Domestic crude oil and natural gas production has remained under pressure due to the gradual decline of ageing oil and gas fields.

¨     Large parts of India’s offshore sedimentary basins, particularly deepwater and ultra-deepwater areas, remain underexplored.

¨     Offshore hydrocarbon exploration is highly capital-intensive, involves long gestation periods and carries significant geological and commercial risks.

¨     Drilling in ultra-deepwater blocks (water depths exceeding 1,500 metres) can cost ₹950 crore to ₹2,400 crore per well, with no guarantee of commercially viable discoveries.

¨     High exploration costs and uncertain outcomes have limited investment in frontier offshore exploration.

¨     India’s growing energy demand requires new domestic sources of crude oil and natural gas to reduce dependence on imports and improve energy security.

Significance of the Scheme

¨     Strengthens Energy Security: Reduces dependence on imported crude oil and natural gas and improves resilience against global energy market volatility.

¨     Unlocks Offshore Hydrocarbon Resources: Accelerates deepwater, ultra-deepwater and frontier basin exploration and facilitates reserve accretion of over 600 Million Metric Tonnes of Oil Equivalent (MMTOE).

¨     Promotes Domestic Production and Technological Capabilities: Increases domestic oil and natural gas production and promotes advanced offshore exploration technologies.

¨     Strengthens Make in India and Employment: Strengthens indigenous manufacturing under Make in India and Atmanirbhar Bharat, promotes localisation of offshore equipment and services, and generates large-scale employment.

¨     Promotes Investment and Economic Growth: Stimulates significant investments across the exploration and production value chain, develops common offshore infrastructure, and creates long-term opportunities for industry, innovation and economic growth.