The Union Cabinet has approved ‘Samudra Manthan’ – the National Offshore Exploration Scheme, aimed at accelerating exploration of India’s offshore oil and gas resources.
The scheme is based on the vision of unlocking India’s offshore energy potential and strengthening the country’s journey towards energy security, reduced import dependence and Atmanirbhar Bharat.
About Samudra Manthan Scheme
Samudra Manthan is a Central Sector Scheme implemented by the Ministry of Petroleum and Natural Gas to promote exploration of offshore hydrocarbon resources.
The scheme focuses on:
- Deepwater exploration
- Ultra-deepwater exploration
- Frontier offshore basins with untapped hydrocarbon potential
The scheme has been approved with a total financial outlay of ₹84,084 crore and will be implemented up to FY 2030–31.
Need for Offshore Exploration
Offshore oil and gas exploration involves significant technological and financial challenges due to:
- High operational risks
- Complex geological conditions
- Requirement of advanced drilling technology
- Long gestation periods of around 5–10 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 natural production decline of around 6–7% annually, creating the need to discover new reserves.
Objectives of the Scheme
The Samudra Manthan initiative aims to:
- Reduce risks associated with offshore exploration.
- Attract greater private and domestic investment.
- Increase domestic oil and gas production.
- Reduce dependence on imported crude oil and natural gas.
- Strengthen India’s energy security.
- Support the objectives of:
- Viksit Bharat
- Make in India
- Atmanirbhar Bharat
Key Features of Samudra Manthan Scheme
Seismic Data Acquisition and Exploration
The scheme provides support for:
- Collection of seismic data.
- Processing and interpretation of geological information.
- Scientific drilling activities in unexplored offshore regions.
This will help identify potential hydrocarbon reserves and improve exploration efficiency.
Focus on Deepwater and Frontier Basins
The scheme will accelerate exploration activities in offshore regions including:
- Krishna-Godavari Basin
- Cauvery Basin
- Mahanadi Basin
- Andaman offshore region
These areas have significant untapped energy potential.
Infrastructure Development Under the Scheme
The programme includes creation of supporting infrastructure such as:
- Common offshore production and evacuation facilities.
- Integrated Oil and Gas Manufacturing and Services Zone.
- Digital programme management systems.
- Technology adoption platforms.
- Capacity-building initiatives.
- International cooperation in offshore exploration.
These measures aim to create a complete ecosystem for offshore energy development.
Financial Allocation
The total allocation of ₹84,084 crore will be distributed across various activities:
Deepwater Exploratory Drilling
₹43,200 crore allocated for drilling 60 deepwater exploratory wells.
Seismic Data Acquisition
₹28,534 crore allocated for acquiring and analysing seismic information.
Offshore Infrastructure Hubs
₹10,000 crore allocated for developing common offshore infrastructure.
Manufacturing and Services Zones
₹2,000 crore allocated for oil and gas manufacturing and service ecosystem development.
Risk Sharing and Government Support
Since offshore exploration involves high financial uncertainty, the government will provide risk-sharing support.
Key provisions include:
- Government support of up to 50% of eligible drilling costs.
- Maximum assistance limit of ₹675 crore per well.
This mechanism aims to encourage participation from both public and private sector players.
Implementation and Current Progress
ONGC Initiatives
- ONGC plans to drill around 150 deepwater wells over seven years.
- It aims to assess approximately 5,600 Million Metric Tonnes of Oil Equivalent (MMTOE) of potential resources.
Oil India Limited Activities
- Oil India is exploring offshore opportunities, particularly in the Andaman region.
- It has reported natural gas discoveries in:
- Vijayapuram-2
- Vijayapuram-3 wells
Production and Reserve Targets
The scheme aims to achieve significant growth in India’s hydrocarbon sector.
Key targets include:
- Addition of over 600 MMTOE of oil and gas reserves.
- Increasing annual domestic oil and gas production from around 62 MMTOE to 80 MMTOE.
- Expanding India’s resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent.
Significance of Samudra Manthan Scheme
Strengthening Energy Security
The scheme can help India reduce dependence on imported crude oil by increasing domestic production capacity.
Reducing Import Burden
Successful exploration and production activities could potentially reduce crude oil imports by nearly ₹1 lakh crore annually.
Boosting Domestic Manufacturing
Development of offshore infrastructure and services will encourage:
- Indigenous manufacturing
- Technology development
- Growth of oil and gas support industries
Employment Generation
The scheme is expected to create large-scale employment opportunities in:
- Exploration activities
- Engineering services
- Offshore infrastructure
- Manufacturing sectors
Developing Offshore Technology Ecosystem
By promoting advanced technology adoption and global cooperation, India can build a competitive offshore exploration and services ecosystem.
Conclusion
The Samudra Manthan – National Offshore Exploration Scheme represents a strategic move towards unlocking India’s offshore energy potential. By combining government support, advanced technology, risk-sharing mechanisms and private sector participation, the scheme aims to strengthen India’s energy independence and contribute to the vision of Viksit Bharat and Atmanirbhar Bharat.
FAQ: Samudra Manthan – National Offshore Exploration Scheme
What is the Samudra Manthan Scheme?
Samudra Manthan is a Central Sector Scheme launched by the Ministry of Petroleum and Natural Gas to promote offshore oil and gas exploration in India.
What is the main objective of the Samudra Manthan Scheme?
The scheme aims to unlock India’s offshore energy potential, increase domestic hydrocarbon production, reduce import dependence, and strengthen energy security.
What is the total financial outlay of the Samudra Manthan Scheme?
The scheme has been approved with a total financial allocation of ₹84,084 crore and will be implemented up to FY 2030–31.
Which offshore regions will be covered under the Samudra Manthan Scheme?
The scheme focuses on deepwater and frontier offshore basins, including the Krishna-Godavari Basin, Cauvery Basin, Mahanadi Basin, and Andaman offshore region.
How does the government support offshore exploration under this scheme?
The government provides risk-sharing support of up to 50% of eligible drilling costs, with assistance up to ₹675 crore per well, to encourage investment in offshore exploration.
