The Indian government has approved a significant new initiative, the 'Samudra Manthan' National Offshore Exploration Scheme, with an outlay of ₹84,084 crore to accelerate deep-sea oil and gas exploration. This five-year program aims to reduce India's heavy reliance on imported energy by incentivizing exploration in challenging deepwater and ultra-deepwater basins. With India currently importing nearly 89% of its crude oil, the government is taking a direct role in de-risking the high costs associated with offshore drilling.
Under the scheme, the government will provide financial support covering up to 50% of the cost of drilling an exploration well, capped at ₹650 crore per well. This funding is intended to encourage both state-run entities like ONGC and Oil India, as well as private firms, to explore frontier areas where geological risks have historically deterred investment. The program will support the drilling of 60 such wells over the next five years.
Beyond direct drilling support, the initiative allocates ₹28,534 crore for advanced seismic surveys and data processing to map the seabed more effectively. Another ₹10,000 crore is earmarked for building shared offshore infrastructure, such as pipelines and processing facilities, which will help make smaller or stranded discoveries commercially viable. A further ₹2,000 crore will be used to establish a manufacturing zone for oilfield equipment to strengthen the domestic supply chain.
Officials expect the scheme to add 600 million tonnes of oil equivalent to India's hydrocarbon reserves and boost annual domestic production by 10 to 15 million tonnes. By sharing the financial burden of exploration, the government hopes to unlock potential in regions like the Krishna-Godavari, Cauvery, and Mahanadi basins, ultimately aiming to stabilize energy security against the backdrop of volatile global supply chains.