- India launches the Samudra Manthan offshore exploration scheme on Friday (July 31, 2026) with ₹84,084 crore in funding through fiscal year 2030-31.
- State-owned ONGC plans to drill 150 deepwater wells over seven years, while Oil India has reported gas at Vijayapuram-2 and Vijayapuram-3.
- Existing oil and gas fields have witnessed a natural production decline of about 6-7% every year, according to government estimates.
- The Samudra Manthan program seeks to raise annual oil and gas output from about 62 MMTOE to 80 MMTOE and expand the hydrocarbon resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent.
- The overall outlay is categorised into four broad components; the first is seismic data acquisition with an outlay of ₹28,534 crore.
- The other outlay components are common offshore infrastructure hubs (₹10,000 crore) and oil and gas manufacturing and services zones (₹2,000 crore), plus drilling 60 deepwater exploration wells with ₹43,200 crore.
- Hydrocarbon exploration is capital-intensive with long gestation periods of five to ten years; a single deepwater exploratory well can cost about $125 million to $150 million.
- The Oil Ministry sees potential in deepwater and ultra-deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi and the Andaman region.
India's Samudra Manthan scheme is a significant initiative aimed at enhancing the country's offshore hydrocarbon exploration capabilities with an investment of ₹84,084 crore. The program is designed to boost energy security and increase domestic oil and gas production from 62 million metric tonnes to 80 million metric tonnes annually by fiscal 2030-31.126
The scheme encompasses four main components: seismic data acquisition with an outlay of ₹28,534 crore, development of common offshore infrastructure hubs for ₹10,000 crore, establishment of oil and gas manufacturing zones for ₹2,000 crore, and drilling of 60 deepwater exploration wells with an allocation of ₹43,200 crore. The government aims to share up to 50% of the eligible drilling costs, capped at ₹675 crore per well.78910
The initiative is crucial as existing oil and gas fields are experiencing a natural production decline of 6-7% annually. The government recognizes the high-risk nature of offshore exploration and is adopting a risk-sharing approach to encourage sustained investment and unlock India's offshore resources.
State-owned companies like Oil India Limited and Oil and Natural Gas Corp (ONGC) are already making strides in this sector, with ONGC planning to drill 150 deepwater wells over the next seven years, tapping into an estimated 5,600 million metric tonnes of hydrocarbon potential. The government estimates that the additional production could reduce crude oil imports by nearly ₹1 lakh crore annually, thereby strengthening India's energy security.34
“Of the ₹84,084 crore corpus, ₹43,200 crore is earmarked for drilling 60 deepwater exploration wells, with government support of up to 50% of eligible cost or ₹675 crore per well. ONGC plans 150 deepwater wells over seven years, and the scheme targets cutting crude oil imports by nearly ₹1 lakh crore annually if exploration succeeds.”
