Samudra Manthan – National Offshore Exploration Scheme

Samudra Manthan – National Offshore Exploration Scheme
Why in News?
The Union Cabinet has approved Samudra Manthan, the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore up to FY 2030–31. It is India's most ambitious offshore hydrocarbon exploration programme aimed at boosting domestic oil and gas production, reducing import dependence and strengthening long-term energy security.
What is Samudra Manthan?
•    Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas (MoPNG) designed to accelerate offshore oil and gas exploration, particularly in India's deepwater and ultra-deepwater basins.
•    The scheme seeks to de-risk offshore exploration through government financial support, encourage greater participation by public and private companies, and build long-term domestic capabilities across the offshore exploration and production value chain.
•    It marks the transition from recent policy reforms in the hydrocarbon sector to mission-mode implementation for achieving energy security and Atmanirbhar Bharat.
Why is the Scheme Needed?
•    India is the world's third-largest consumer of crude oil and spends nearly USD 144 billion (about ₹13 lakh crore) annually on crude oil imports.
•    Domestic energy demand is expected to rise steadily, making greater domestic hydrocarbon production strategically important.
•    Existing oil and gas fields naturally decline by 6–7% every year, making continuous exploration and new discoveries essential.
•    Offshore exploration is highly capital-intensive and involves long gestation periods of 5–10 years, requiring government support to attract investment.
•    Most of India's untapped hydrocarbon potential now lies beneath the sea, particularly in deepwater and ultra-deepwater regions.
Major Components of the Scheme
The total outlay of ₹84,084 crore has been allocated across four major components:
•    ₹43,200 crore for drilling 60 deepwater exploration wells, with government support of up to 50% of eligible drilling cost or ₹675 crore per well.
•    ₹28,534 crore for large-scale offshore seismic data acquisition to improve geological understanding and reduce exploration risk.
•    ₹10,000 crore for developing common offshore infrastructure hubs to facilitate commercialisation of future discoveries.
•    ₹2,000 crore for establishing Oil and Gas Manufacturing and Services Zones to promote domestic manufacturing, localisation of critical equipment and development of indigenous service capabilities.
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Key Objectives
•    Accelerate exploration of India's offshore hydrocarbon resources.
•    Unlock more than 600 Million Metric Tonnes of Oil Equivalent (MMTOE) of potential reserves.
•    Reduce India's dependence on imported crude oil and natural gas.
•    Encourage private sector participation by sharing exploration risks.
•    Promote indigenous manufacturing and technological capability in offshore exploration.
•    Strengthen India's long-term energy security and strategic resilience.
Major Offshore Focus Areas
The scheme primarily targets India's frontier offshore basins, including:
•    Krishna-Godavari Basin
•    Cauvery Basin
•    Mahanadi Basin
•    Andaman Offshore Region
These deepwater and ultra-deepwater regions are believed to contain substantial untapped hydrocarbon reserves but require advanced technology and significant investment for exploration.
Policy Reforms Supporting the Scheme
Samudra Manthan builds upon several major reforms introduced since 2014:
•    More than 99% of the earlier "No-Go" offshore areas have been opened for exploration, making over one million square kilometres of India's Exclusive Economic Zone (EEZ) available.
•    Transition from Production Sharing Contracts (PSC) to Revenue Sharing Contracts (RSC) to improve transparency and simplify fiscal administration.
•    Enactment of the Oilfields (Regulation and Development) Amendment Act, 2025, modernising the legal framework governing petroleum exploration.
•    Introduction of the Petroleum and Natural Gas Rules, 2025 to improve ease of doing business and streamline lease administration.
•    Standardisation of the Empowered Committee of Secretaries across all exploration contracts to ensure uniform decision-making.
•    Reorientation of ONGC and Oil India Limited (OIL) towards greater emphasis on exploration activities.
Significance
•    Samudra Manthan represents India's largest-ever government-backed offshore exploration initiative.
•    By sharing exploration risks, the scheme is expected to stimulate greater private investment in high-risk deepwater exploration.
•    Improved seismic data and drilling activity can reduce geological uncertainty and increase the probability of major hydrocarbon discoveries.
•    Development of offshore infrastructure and manufacturing zones will strengthen India's domestic energy ecosystem while creating employment, technology development and industrial growth.
•    The scheme contributes directly to energy security, import substitution, Atmanirbhar Bharat and long-term economic resilience.