New Delhi, India / RankWire.AI / – The Union Cabinet, led by Prime Minister Narendra Modi, approved a groundbreaking national project on Friday aimed at boosting hydrocarbon discovery within Indian ocean basins. As confirmed by official statements from the Press Information Bureau, the Cabinet sanctioned a Rs 84,084 crore offshore oil and gas exploration plan, named the Samudra Manthan national program. Managed under the Ministry of Petroleum and Natural Gas, this scheme will be executed through the financial years 2030 to 2031. Valued at several billion rupees, the initiative seeks to expand deepwater exploration, strengthen energy security, and tap into previously unexploited oil and natural gas resources within India’s exclusive economic zone.
The financial strategy allocates funds across four main pillars designed to overhaul the upstream petroleum sector. As per the Prime Minister’s Office disclosures, 28,534 crore rupees are designated specifically for offshore seismic data collection, processing, and high-resolution analysis. This segment includes 12,000 crore rupees for basin-wide two-dimensional seismic surveys, 12,534 crore rupees for three-dimensional seismic mapping, and 4,000 crore rupees for upgrading the National Data Repository using artificial intelligence technologies. This targeted funding will enable detailed mapping of unexplored frontier basins and formerly restricted maritime zones along the eastern and western coastlines.
The bulk of the capital, totaling 55,200 crore rupees, is allocated for direct exploration and infrastructure projects. The government has set aside 43,200 crore rupees for drilling 60 deepwater and ultra-deepwater exploration wells in designated offshore blocks. Under the risk-sharing framework, public support will cover up to 50 percent of qualifying exploratory drilling expenses, with a cap of 675 crore rupees per well. Additionally, 10,000 crore rupees are allocated for offshore production and evacuation infrastructure, while 2,000 crore rupees will fund the development of specialized manufacturing zones for petroleum equipment and technical services.
Cabinet Grants Rs 84,084 Crore for Offshore Oil and Gas Exploration Program
Official estimates indicate that the Rs 84,084 crore offshore exploration scheme aims to significantly increase reserves in the coming decade. The government expects to discover over 600 million metric tonnes of oil equivalent through targeted exploration efforts. The plan targets raising domestic oil and gas production from 62 million metric tonnes of oil equivalent to 80 million metric tonnes, boosting India’s total hydrocarbon reserves from 1.6 billion to 2.2 billion tonnes of oil equivalent. This expansion is projected to reduce crude oil imports by nearly 1 lakh crore rupees annually.
Union Minister Ashwini Vaishnaw, speaking at a press conference in New Delhi, emphasized that the program tackles significant geopolitical risks impacting global crude oil supplies. With India’s crude import dependency reaching 88.7 percent in FY 2025-2026, Samudra Manthan was designed to foster long-term energy independence. Deepwater exploration in regions such as Krishna-Godavari, Cauvery, Mahanadi, and the Andaman offshore demands substantial investment, ranging from 100 million to 250 million dollars per well. The government’s risk-sharing model aims to motivate private and public sector upstream operators to commit to these high-stakes projects, despite geological and operational challenges.
Incentives for Deepwater Drilling Up to 675 Crore Per Well
A core aspect of the scheme involves developing offshore infrastructure collectively to enhance the economics of smaller hydrocarbon discoveries. By establishing common processing platforms, subsea pipelines, and evacuation systems, the Ministry of Petroleum and Natural Gas aims to lower capital costs for commercial development. The scheme also allocates 350 crore rupees for digital project oversight, monitoring, workforce training, and international technical partnerships. These measures are designed to nurture a comprehensive industrial ecosystem capable of supporting offshore marine engineering, underwater robotics, and advanced deepwater production technologies.
The launch of Samudra Manthan builds on a decade of policy reforms in upstream oil, including open acreage licensing and unified contractual frameworks. By extending financial support through 2031, the government aims to foster long-term industrial partnerships, boost high-skilled employment, and promote domestic manufacturing under the Make in India program. As offshore surveys and drilling contracts unfold, this strategic scheme charts a clear course toward reducing import dependence, enhancing economic resilience, and ensuring long-term energy security for India.