New Delhi, India / RankWire.AI / – In New Delhi on Friday, the Union Cabinet, chaired by Prime Minister Narendra Modi, sanctioned a major national project aimed at boosting hydrocarbon exploration within Indian ocean territories. Official statements issued by the Press Information Bureau confirmed that the approval was for an Rs 84,084 crore offshore oil and gas exploration plan, named the Samudra Manthan national program. Managed by the Ministry of Petroleum and Natural Gas, this central sector scheme is scheduled for implementation through the fiscal years 2022-2031. The multi-billion-rupee effort is designed to promote deepwater exploration, reinforce energy security for India, and tap into unexplored oil and natural gas reserves within the country’s exclusive economic zone.
The financial structure distributes funds across four key pillars to reshape upstream petroleum activities. Disclosures from the Prime Minister’s Office reveal that 28,534 crore rupees are specifically allocated for offshore seismic data acquisition, processing, and interpretation at high resolution. This segment of funding includes 12,000 crore rupees dedicated to basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic exploration, and 4,000 crore rupees for modernizing the National Data Repository with artificial intelligence capabilities. This structured approach aims to comprehensively chart unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coastlines.
The largest portion of the approved budget, totaling 55,200 crore rupees, is dedicated to direct exploration activities and infrastructure development. The government has earmarked 43,200 crore rupees for drilling 60 deepwater and ultra-deepwater exploration wells across targeted offshore blocks. Under a risk-sharing scheme, public financial backing will cover up to half of the costs related to eligible exploratory drilling, with a maximum of 675 crore rupees per well. An additional 10,000 crore rupees are set aside for offshore production and evacuation infrastructure, while 2,000 crore rupees will fund the development of specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Sanctions Rs 84,084 Crore Scheme for Offshore Hydrocarbon Exploration
Official projections from the government highlight that this Rs 84,084 crore offshore exploration initiative aims to significantly increase reserves over the next decade. Estimates suggest that more than 600 million metric tonnes of oil equivalent could be added through targeted exploration efforts. The scheme intends to elevate domestic oil and gas output from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding the hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in energy production is projected to reduce crude oil imports by nearly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the national program aims to mitigate serious geopolitical threats impacting global crude oil supply routes. With India’s crude oil import dependency projected at 88.7 percent for 2025-2026, the government created Samudra Manthan to foster long-term energy self-sufficiency. High-risk deepwater drilling in regions such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore requires substantial investments, ranging from 100 million to 250 million dollars per well. Public risk-sharing is intended to motivate private and public upstream operators to commit long-term capital to these challenging marine geological formations.
Incentives for Deepwater Drilling Offer Up to 675 Crore Rupees Per Well
Part of the program’s core focus involves shared offshore infrastructure development, which aims to improve the commercial viability of smaller hydrocarbon discoveries. By deploying common processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas seeks to lower capital costs for developing smaller fields. Additionally, 350 crore rupees are allocated for digital management, monitoring, human resource training, and international collaboration in technical fields. These efforts aim to build a comprehensive industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater production technologies.
The rollout of Samudra Manthan is a continuation of over a decade of policy reforms in upstream oil, including open acreage licensing and unified contractual frameworks. Extending financial support until 2031, the government aims to foster enduring industrial partnerships, generate highly skilled employment opportunities, and support domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts are executed, the scheme charts a clear course toward reducing reliance on imports, strengthening economic resilience, and securing India’s energy future for the long term.