New Delhi, India / RankWire.AI / – The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a major national initiative on Friday to accelerate hydrocarbon discovery across Indian ocean basins. Official releases from the Press Information Bureau confirmed the approval of the ₹84,084 crore Samudra Manthan National Offshore Exploration Scheme. Implemented under the Ministry of Petroleum and Natural Gas through financial year 2030–31, the central sector program is structured to expand deepwater drilling, enhance energy security, and unlock untapped oil and gas resources within India’s Exclusive Economic Zone.
The financial framework allocates capital across four principal program pillars to transform the upstream petroleum landscape. According to official disclosures issued by the Prime Minister’s Office, the government designated 28,534 crore rupees specifically for offshore seismic data acquisition, processing, and high-resolution interpretation. This data segment includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic coverage, and 4,000 crore rupees to modernize the National Data Repository using artificial intelligence tools. The structured allocation ensures comprehensive mapping of unexplored frontier basins and erstwhile restricted maritime zones across the eastern and western sea boards.
Direct exploratory operations and infrastructure development constitute the largest capital share of the approved funding package, totaling 55,200 crore rupees. The government earmarked 43,200 crore rupees to support the drilling of 60 deepwater and ultra-deepwater exploration wells across target offshore blocks. Under the risk-sharing mechanism, public financial support will cover up to 50 percent of eligible exploratory drilling costs, capped at 675 crore rupees per well. An additional 10,000 crore rupees is allocated for shared offshore production and evacuation infrastructure, while 2,000 crore rupees will fund the creation of specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Oil Gas Exploration Scheme
Official projections indicate that the Cabinet approves Rs 84,084 crore offshore oil gas exploration scheme to achieve substantial reserve additions over the coming decade. Government estimates project the accumulation of more than 600 million metric tonnes of oil equivalent in hydrocarbon reserves through targeted exploration. The initiative aims to raise annual domestic oil and gas output from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, expanding the overall hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This increase in domestic energy production is expected to offset crude oil imports by approximately 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw stated during a press briefing in New Delhi that the national program addresses severe geopolitical risks facing international crude oil supply lines. With domestic crude oil import dependency reaching 88.7 percent in financial year 2025 to 2026, the government structured Samudra Manthan to build long-term energy self-reliance. High-risk exploratory drilling in deepwater basins like Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore region requires significant capital investment, ranging between 100 million and 250 million dollars per well. Public risk-sharing aims to incentivize private and public upstream energy operators to commit long-term capital to challenging maritime geological formations.
Deepwater Drilling Incentive Offers Up to 675 Crore Per Well
Shared offshore infrastructure development forms a core component of the program, designed to improve the commercial viability of smaller hydrocarbon discoveries. By establishing common processing platforms, subsea pipelines, and evacuation facilities, the Ministry of Petroleum and Natural Gas aims to reduce capital expenditures for commercial field developments. The scheme also provides 350 crore rupees for digital program management, monitoring, human resource development, and international technical collaboration. These measures are intended to foster an integrated industrial ecosystem capable of supporting specialized offshore marine engineering, underwater robotics, and deepwater production technologies.
The implementation of Samudra Manthan builds upon a decade of policy updates in the upstream oil sector, including open acreage licensing and unified contract frameworks. By extending financial support through 2031, the government seeks to foster long-term industrial partnerships, generate high-skilled technical employment, and advance domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts roll out, the national scheme establishes a structured path toward reduced import reliance, economic resilience, and long-term energy independence for India.