New Delhi, India / RankWire.AI / – On Friday, the Union Cabinet, headed by Prime Minister Narendra Modi, approved a groundbreaking national plan aimed at boosting hydrocarbon exploration across Indian ocean regions. According to official statements from the Press Information Bureau, the Cabinet sanctioned a Rs 84,084 crore offshore oil and gas exploration project, known as the Samudra Manthan initiative. Managed under the Ministry of Petroleum and Natural Gas, this scheme will be executed through the 2022-2023 to 2030-2031 financial years. The multi-billion-rupee project is designed to expand deepwater exploration, improve the country’s energy independence, and tap into unexplored oil and natural gas reserves within India’s exclusive economic zone.
The financial blueprint divides investments among four key pillars to revolutionize upstream oil and gas activities. As per official disclosures from the Prime Minister’s Office, Rs 28,534 crore has been allocated for offshore seismic data collection, processing, and detailed interpretation. This includes Rs 12,000 crore for basin-wide two-dimensional seismic surveys, Rs 12,534 crore for three-dimensional seismic mapping, and Rs 4,000 crore for upgrading the National Data Repository with artificial intelligence tools. These allocations aim to facilitate detailed mapping of unexplored frontier basins and previously restricted maritime zones along India’s eastern and western coasts.
The majority of the approved funds, Rs 55,200 crore, will support direct exploration activities and infrastructure development. Specifically, Rs 43,200 crore is dedicated to drilling 60 deepwater and ultra-deepwater exploration wells in targeted offshore blocks. Under the risk-sharing framework, the government will cover up to 50 percent of qualifying exploratory drilling costs, with a maximum of 675 crore rupees per well. An additional Rs 10,000 crore is earmarked for offshore production and evacuation infrastructure, while Rs 2,000 crore will be used to establish specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Approves Rs 84,084 Crore Offshore Hydrocarbon Exploration Program
Forecasts show that the Rs 84,084 crore scheme will significantly expand India’s hydrocarbon reserves in the coming decade. Government estimates suggest the addition of over 600 million metric tonnes of oil equivalent through targeted exploration efforts. The scheme aims to increase annual domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, lifting total hydrocarbon reserves from 1.6 billion to 2.2 billion tonnes of oil equivalent. This boost in local energy production is expected to cut crude oil import expenses by roughly 1 lakh crore rupees each year.
Union Minister Ashwini Vaishnaw highlighted during a New Delhi press briefing that the initiative aims to counter significant geopolitical threats impacting global crude oil supply routes. With India’s dependence on crude oil imports reaching 88.7 percent in the 2025-2026 financial year, the Samudra Manthan scheme is a strategic move to secure long-term energy independence. Deepwater exploration in challenging basins such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore will require substantial investments, ranging from 100 million to 250 million dollars per well. The risk-sharing approach seeks to motivate both public and private upstream companies to commit long-term capital to these demanding maritime geological projects.
Incentives for Deepwater Drilling Can Reach Up to 675 Crore Rupees Per Well
A key component of the scheme involves shared offshore infrastructure development, intended to enhance the economic prospects of smaller hydrocarbon discoveries. By creating common processing platforms, subsea pipelines, and evacuation networks, the Ministry of Petroleum and Natural Gas aims to lower capital costs for commercial field development. Additionally, Rs 350 crore has been allocated for digital program management, project monitoring, workforce development, and international technical collaboration. These efforts are designed to foster a robust offshore industrial ecosystem capable of supporting advanced marine engineering, underwater robotics, and deepwater extraction technologies.
Building on a decade of upstream sector policy reforms, including open acreage licensing and unified contractual frameworks, the Samudra Manthan program aims to foster enduring industrial partnerships, create skilled employment, and promote domestic manufacturing under the Make in India initiative. As offshore surveys and deepwater drilling contracts commence, this structured approach aims to lessen reliance on imports, bolster economic resilience, and achieve long-term energy self-sufficiency for India.