Samudra Manthan: National Offshore Exploration Scheme

Introduction

Samudra Manthan, the National Offshore Exploration Scheme, has been approved by the Union Cabinet to unlock India’s offshore oil and gas potential. It translates the Prime Minister’s Independence Day 2025 vision into a structured programme for expanding exploration in deepwater, ultra-deepwater and frontier offshore areas.

About the Scheme

Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas with an approved outlay of ₹84,084 crore for implementation up to FY 2030–31. Its primary focus is to accelerate exploration and development of India’s frontier offshore hydrocarbon resources.

Why is the Scheme Needed?

Offshore exploration is highly risky, capital-intensive and technologically complex, with a long gestation period of around five to ten years. A single deepwater exploratory well can cost approximately $125–150 million, making private investment difficult without adequate risk-sharing mechanisms.

At the same time, existing oil and gas fields are experiencing a natural production decline of around 6–7% annually, creating a need to continuously discover and develop new domestic hydrocarbon resources.

Objectives

The scheme aims to de-risk offshore exploration and attract greater private and public investment into India’s offshore basins. It seeks to accelerate domestic oil and gas production, reduce import dependence and strengthen India’s energy security.

The programme also supports the broader objectives of Viksit Bharat, Make in India and Atmanirbhar Bharat by promoting domestic capabilities in offshore exploration, technology, manufacturing and services.

Major Features

The scheme provides for acquisition, processing and interpretation of seismic data to improve geological understanding and identify prospective offshore hydrocarbon resources.

It also promotes accelerated deepwater, ultra-deepwater and scientific drilling in frontier offshore basins, thereby expanding exploration beyond relatively mature hydrocarbon-producing areas.

Offshore Infrastructure

A major component of the scheme is the development of common offshore production and evacuation infrastructure, which can reduce the cost and risks associated with individual exploration and production projects.

The scheme also proposes an integrated Oil and Gas Manufacturing and Services Zone to strengthen domestic manufacturing and services related to offshore exploration.

In addition, digital programme management, capacity building, technology adoption, stakeholder engagement and international cooperation are envisaged to improve the overall efficiency of the offshore exploration ecosystem.

Financial Allocation

Of the total ₹84,084 crore outlay, around ₹43,200 crore has been allocated for drilling 60 deepwater exploratory wells.

Around ₹28,534 crore is earmarked for seismic data acquisition, while ₹10,000 crore is allocated for developing common offshore infrastructure hubs. Another ₹2,000 crore is provided for oil and gas manufacturing and services zones.

Risk Sharing and Investment Support

Since offshore exploration involves substantial geological and financial risks, the government will provide support of up to 50% of eligible drilling costs, subject to a maximum of ₹675 crore per well.

This risk-sharing mechanism is intended to make deepwater exploration more commercially attractive and encourage sustained public and private investment in frontier offshore basins.

The major targeted areas include the Krishna-Godavari, Cauvery and Mahanadi basins, along with the Andaman region.

Current Exploration Efforts

ONGC plans to drill around 150 deepwater wells over seven years and assess nearly 5,600 MMTOE (Million Metric Tonnes of Oil Equivalent) of potential resources.

Oil India is also undertaking exploration in the Andaman region and has reported the presence of natural gas in Vijayapuram-2 and Vijayapuram-3.

Production and Reserve Targets

Subject to successful exploration, the scheme aims to add more than 600 MMTOE of reserves and increase India’s annual domestic oil and gas production from approximately 62 MMTOE to 80 MMTOE.

It also seeks to expand India’s overall hydrocarbon resource base from around 1.6 billion tonnes to 2.2 billion tonnes of oil equivalent.

Significance for India

Energy Security

Greater domestic production of oil and gas can help reduce India’s dependence on imported hydrocarbons, thereby strengthening energy security and reducing vulnerability to fluctuations in international crude oil and gas prices.

Reduction in Import Bill

Successful development of offshore resources could potentially reduce India’s crude oil import bill by nearly ₹1 lakh crore annually, thereby improving the country’s external-sector resilience.

Industrial Development

The scheme can stimulate indigenous manufacturing, particularly in offshore equipment, drilling technology, engineering, marine services and oilfield technologies, supporting the objectives of Make in India and Atmanirbhar Bharat.

Employment Generation

Expansion of offshore exploration and associated manufacturing and service activities can generate large-scale employment across engineering, construction, logistics, technology, marine services and specialised oilfield operations.

Technology and Strategic Capability

The focus on deepwater and ultra-deepwater exploration can promote advanced technological capabilities and help India develop a globally competitive offshore technology and services ecosystem.

Overall Significance

Samudra Manthan represents a major attempt to unlock India’s frontier offshore hydrocarbon potential by combining government risk-sharing, advanced exploration technology, common infrastructure and private-sector participation. Its success could simultaneously strengthen energy security, reduce import dependence, expand domestic production and build India’s indigenous offshore industrial capabilities.