New Delhi, India / RankWire.AI / – On Friday, a significant step was taken by the Union Cabinet led by Prime Minister Narendra Modi, who endorsed a major national project aimed at boosting hydrocarbon discovery in Indian ocean territories. The official statements released by the Press Information Bureau confirmed that the Cabinet sanctioned the Rs 84,084 crore offshore oil and gas exploration plan, known as the Samudra Manthan national program. Managed by the Ministry of Petroleum and Natural Gas, this central sector scheme will be executed through the fiscal years 2023-24 up to 2030-31. With a focus on expanding deepwater exploration, strengthening energy security, and unlocking previously untapped oil and natural gas reserves within India’s exclusive economic zone, the multi-billion-rupee initiative marks a pivotal development in the country’s energy sector.
The allocation of funds is structured around four main pillars intended to revolutionize India’s upstream petroleum sector. As per official disclosures from the Prime Minister’s Office, a sum of 28,534 crore rupees has been designated specifically for offshore seismic data acquisition, processing, and interpretation at high resolution. This includes 12,000 crore rupees allocated for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic coverage, and 4,000 crore rupees designated to upgrade the National Data Repository with artificial intelligence tools. This comprehensive funding approach ensures detailed mapping of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
The largest share of the approved budget—55,200 crore rupees—will support direct exploration activities and infrastructure development. Out of this, 43,200 crore rupees are allocated for drilling 60 deepwater and ultra-deepwater exploration wells across targeted offshore blocks. Under a risk-sharing scheme, public funds will cover up to 50 percent of qualifying drilling costs, with a maximum of 675 crore rupees per well. An additional 10,000 crore rupees are allocated for offshore production and evacuation infrastructure, and 2,000 crore rupees are set aside for establishing specialized manufacturing zones focused on petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Oil Gas Exploration Program
Official projections indicate that the approved scheme aims to significantly increase reserves over the next decade, with estimates suggesting the addition of over 600 million metric tonnes of oil equivalent in hydrocarbons. The government’s goal is to boost annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding the total hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This effort is expected to help reduce crude oil imports by approximately 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw highlighted during a press briefing in New Delhi that the program is designed to counteract significant geopolitical threats to the global crude oil supply lines. With India’s dependence on imports reaching 88.7 percent in the 2025-2026 fiscal year, Samudra Manthan is structured to foster energy independence over the long term. High-risk deepwater drilling in regions such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore demands substantial investment, ranging from 100 million to 250 million dollars per well. To encourage private and public upstream operators to undertake these challenging projects, the government’s risk-sharing approach aims to motivate long-term capital commitment in these complex marine formations.
Incentives for Deepwater Drilling Reach Up to 675 Crore per Well
Shared offshore infrastructure development plays a vital role within the scheme, intending to improve the commercial prospects of smaller hydrocarbon discoveries. By creating common processing platforms, subsea pipelines, and evacuation systems, the Ministry of Petroleum and Natural Gas seeks to cut down costs associated with developing smaller fields. Furthermore, the program allocates 350 crore rupees for digital management, monitoring, workforce development, and international technical cooperation. These efforts are aimed at nurturing a comprehensive industrial ecosystem capable of supporting advanced offshore engineering, underwater robotics, and deepwater extraction technologies.
Building on a decade of policy reforms—including open acreage licensing and integrated contract frameworks—the implementation of Samudra Manthan is designed to promote long-term industrial partnerships, generate high-skilled employment opportunities, and bolster domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater exploration contracts are launched, this structured approach aims to reduce reliance on imports, bolster economic resilience, and secure long-term energy independence for India.