- India's crude import dependence has risen sharply to over 85%, highlighting the need for increased domestic production.
- The Cabinet approved the 'Samudra Manthan' — the National Offshore Exploration Scheme, which aims to boost domestic oil production.
- The scheme includes government-funded seismic data acquisition, financial support for up to 40 deepwater and ultra-deepwater exploratory wells, and common infrastructure for evacuation and production.
- ONGC commenced its first well under the program on July 25, 2026, marking a significant step in the initiative.
- Round-X, the largest exploration auction in India's history, opens 25 blocks covering 1.9 lakh square kilometres, significantly expanding exploration opportunities.
- The Samudra Manthan Programme is valued at ₹84,084 crore, comprising ₹28,534 crore for offshore data acquisition, ₹55,200 crore for offshore exploration and infrastructure-led production, and ₹350 crore for monitoring and support activities.
- Royalty rates have been cut sharply, with deepwater developments receiving a seven-year royalty holiday, and ultra-deepwater royalties can be as low as 2 percent compared to a 12.5 percent onshore rate.
- The government estimates that the eastern and western offshore basins hold over 5,600 million metric tonnes (MMT) of hydrocarbon potential, which could significantly impact domestic oil production.
India's ₹84,084-crore Samudra Manthan offshore exploration scheme aims to significantly reduce the country's reliance on crude oil imports, which currently exceed 85%. The initiative includes funding for up to 40 exploratory wells and offers a seven-year royalty holiday for deepwater projects.
The scheme's financial structure allocates ₹28,534 crore for offshore data acquisition and exploration, ₹55,200 crore for infrastructure-led production, and ₹350 crore for monitoring and support activities. This comprehensive approach is designed to stimulate domestic oil production and mitigate the economic risks associated with volatile global oil prices, which have seen India spending ₹13 lakh crore on imports.
The government estimates that the eastern and western offshore basins hold over 5,600 million metric tonnes of hydrocarbon potential. With existing oil fields declining at a rate of 6-7% annually, the need for new exploration is critical. The National Seismic Program and other initiatives have laid the groundwork for this exploration push, with the government covering a significant portion of the exploratory costs, thus reducing financial risks for companies like ONGC and Jindal Drilling.8
The Round-X auction, the largest in India's history, will open up 99% of previously restricted areas, covering 1.9 lakh square kilometres. This strategic move is expected to attract investment and enhance India's energy security.5
“The scheme offers a seven-year royalty holiday for deepwater developments and cuts ultra-deepwater royalties to as low as 2%, versus 12.5% onshore. ONGC, which commenced its first well on July 25, 2026, expects production to rise to 39 MMT in FY27 and 40 MMT in FY28.”
