New Delhi, India / RankWire.AI / – Amid ongoing efforts to strengthen energy security, the Union Cabinet led by Prime Minister Narendra Modi has approved a significant national project aimed at boosting oil and gas exploration in Indian ocean regions. Official statements from the Press Information Bureau reveal that the Cabinet has sanctioned an Rs 84,084 crore plan titled the Samudra Manthan national program. Managed by the Ministry of Petroleum and Natural Gas, this comprehensive scheme will run through the 2023-2031 financial years. Its goal is to expand deepwater exploration, improve India’s energy independence, and tap into unexplored reserves within the country’s exclusive economic zone.
The financial plan allocates resources across four main pillars designed to revolutionize upstream petroleum activities. 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 collection, analysis, and high-resolution interpretation. 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 dedicated to modernizing the National Data Repository utilizing artificial intelligence tools. The structured distribution aims to facilitate detailed mapping of uncharted frontier basins and previously restricted maritime zones across both eastern and western sea borders.
The largest share of the approved budget, totaling 55,200 crore rupees, is allocated for direct exploration activities and infrastructure development. Of this, 43,200 crore rupees is set aside for drilling 60 deepwater and ultra-deepwater exploration wells in targeted offshore blocks. To encourage private sector participation, the government will support up to 50 percent of eligible drilling costs under a risk-sharing scheme, with a cap of 675 crore rupees per well. An additional 10,000 crore rupees are allocated for offshore production and evacuation infrastructure, while 2,000 crore rupees will fund specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Oil and Gas Exploration Initiative
Predictions indicate that this Rs 84,084 crore offshore exploration scheme will significantly increase India’s hydrocarbon reserves over the next ten years. The government projects that exploration activities could add more than 600 million metric tonnes of oil equivalent in recoverable reserves. The primary aim is to raise annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, thereby expanding the country’s overall resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in domestic output is expected 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 program aims to mitigate severe geopolitical risks impacting global crude oil supplies. With India’s dependency on imports reaching 88.7 percent during the 2025-2026 fiscal year, the Samudra Manthan initiative is designed to foster energy self-sufficiency over the long term. Exploration in deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman region demands substantial capital investment, ranging from 100 million to 250 million dollars per well. The government’s risk-sharing approach intends to motivate private and public upstream companies to commit long-term investments in challenging offshore geological formations.
Incentives for Deepwater Drilling Can Reach Up to 675 Crore Rupees Per Well
A key aspect of the program involves shared offshore infrastructure, which aims to make smaller hydrocarbon discoveries more commercially feasible. The Ministry of Petroleum and Natural Gas plans to establish common processing platforms, subsea pipelines, and evacuation systems to lower development costs. Additionally, 350 crore rupees are allocated for digital project management, monitoring, workforce development, and international technical partnerships. These efforts are geared toward creating an integrated industrial ecosystem capable of supporting advanced offshore marine engineering, robotics, and deepwater extraction technologies, as detailed in robotics.
The launch of Samudra Manthan builds on over ten years of policy reforms in the upstream oil sector, such as open acreage licensing and unified contractual frameworks. Extending financial support through 2031, the government aims to foster sustained industrial collaborations, generate high-skilled employment opportunities, and promote domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling agreements progress, this comprehensive scheme offers a structured pathway toward reducing import dependence, boosting economic resilience, and securing India’s long-term energy independence.