Samudra Manthan (National Offshore Exploration Scheme)

Samudra Manthan (National Offshore Exploration Scheme) aims at transforming India’s offshore energy future. Read here to learn more.

India’s rapidly growing economy and expanding industrial base have led to an unprecedented increase in energy demand. Despite being the world’s third-largest consumer of crude oil, India remains heavily dependent on imports, with nearly 85% of its crude oil and around 50% of its natural gas requirements being sourced from overseas.

This import dependence exposes the country to volatile international oil prices, geopolitical tensions, and supply chain disruptions, posing serious challenges to long-term energy security.

Recognising the need to unlock domestic hydrocarbon resources and reduce import dependence, the Union Cabinet approved ‘Samudra Manthan’ (National Offshore Exploration Scheme).

Operating as a Central Sector Scheme under the Ministry of Petroleum and Natural Gas (MoPNG), the programme has been allocated ₹84,084 crore for implementation up to FY 2030-31.

The scheme aims to accelerate offshore oil and gas exploration, particularly in deepwater and ultra-deepwater regions, by reducing exploration risks and encouraging investments through financial and technological support.

What is Samudra Manthan?

Samudra Manthan is a comprehensive national initiative designed to accelerate and de-risk India’s offshore hydrocarbon exploration programme. It provides government support throughout the upstream exploration value chain, including:

• Geological and geophysical surveys
• Seismic data acquisition and interpretation
• Deepwater exploratory drilling
• Frontier basin research
• Shared offshore production infrastructure
• Digital data management and governance

Unlike conventional exploration policies that largely depend on private investment, Samudra Manthan recognises that offshore exploration involves extremely high financial risks and therefore provides substantial public funding to encourage exploration in technically challenging regions.

Key Features of the Scheme

1. Strategic Support for Deepwater and Ultra-Deepwater Drilling

One of the biggest challenges in offshore hydrocarbon exploration is the enormous cost associated with drilling exploratory wells.

Under Samudra Manthan:

• ₹43,200 crore has been earmarked specifically for deepwater and ultra-deepwater exploratory drilling.
• The government will finance up to 50% of drilling costs.
• Financial support may reach ₹650-675 crore per exploratory well.

Why is this important?

• Deepwater wells often cost several hundred crore rupees with no guarantee of discovering commercially viable oil or gas.
• By sharing the financial burden, the government significantly reduces investment risk, making offshore exploration more attractive for public and private companies.

2. Large-Scale Seismic Data Acquisition

Before drilling begins, companies require accurate geological information about subsurface rock formations.

To address this need, ₹28,534 crore has been allocated for:

• High-resolution seismic surveys
• Data processing
• Geological interpretation
• Mapping unexplored offshore basins

Special emphasis will be given to:

• Frontier sedimentary basins
• Previously inaccessible offshore regions
• Former “No-Go” exploration areas

High-quality seismic imaging improves exploration success rates and minimises unnecessary drilling.

3. Development of Common Production Infrastructure

Discoveries often remain undeveloped because companies are reluctant to invest individually in expensive offshore infrastructure.

To overcome this challenge, ₹10,000 crore has been allocated for creating shared infrastructure, including:

• Offshore production facilities
• Pipeline networks
• Evacuation systems
• Processing hubs

Shared infrastructure reduces production costs and enables faster commercialisation of hydrocarbon discoveries.

4. Oil & Gas Manufacturing and Services Zones

India continues to import a large share of offshore exploration equipment.

To promote domestic manufacturing, ₹2,000 crore has been allocated for:

• Manufacturing hubs
• Offshore engineering services
• Equipment fabrication
• Indigenous technology development

This component aligns closely with the Make in India initiative and seeks to develop India as a regional manufacturing centre for offshore energy technologies.

5. Digital Governance through National Data Repository (NDR)

Modern exploration depends heavily on digital geological information.

The scheme integrates:

• National Data Repository (NDR)
• Digital exploration databases
• Real-time programme monitoring
• Online stakeholder engagement
• Capacity building

Digital governance improves transparency, speeds up approvals, and enables better decision-making by investors.

Financial Allocation

Component	Allocation
Deepwater & Ultra-Deepwater Drilling	₹43,200 crore
Seismic Data Acquisition	₹28,534 crore
Common Production Infrastructure	₹10,000 crore
Manufacturing & Services Zones	₹2,000 crore
Digital Governance & Capacity Building	Included under programme management
Total Outlay	₹84,084 crore

Objectives of Samudra Manthan

The scheme has multiple strategic objectives:

• Strengthen India’s energy security
• Reduce dependence on imported crude oil
• Increase domestic hydrocarbon production
• Encourage exploration of frontier offshore basins
• Promote indigenous offshore technologies
• Generate employment in the oil and gas sector
• Develop a globally competitive offshore ecosystem
• Attract domestic and foreign investments

Major Offshore Basins Targeted

The scheme focuses on India’s most promising offshore sedimentary basins:

Krishna-Godavari (KG) Basin

• India’s most productive offshore gas basin
• Home to several deepwater discoveries
• Significant future production potential

Cauvery Basin

• Located in Tamil Nadu
• Contains both oil and gas prospects
• Increasing exploration activity

Mahanadi Basin

• Eastern offshore basin
• Underexplored with considerable potential

Andaman Basin

• Frontier deepwater basin
• Geological similarities with Southeast Asian hydrocarbon provinces
• High-risk but potentially high-reward exploration area

Importance of Offshore Exploration

India possesses 26 sedimentary basins, but many offshore regions remain poorly explored.

Offshore exploration offers:

• Large untapped hydrocarbon reserves
• Higher probability of major discoveries
• Long-term domestic energy supply
• Reduced import dependence
• Stable fuel availability for industries

Deepwater discoveries often contain large natural gas reserves that can support India’s transition toward cleaner energy.

Significance of Samudra Manthan

Strengthening Energy Security

India spends an enormous foreign exchange on crude oil imports.

The scheme aims to:

• Add over 600 MMTOE (Million Metric Tonnes of Oil Equivalent) of hydrocarbon reserves.
• Increase domestic production.
• Reduce exposure to global oil price shocks.

Reducing Exploration Risk

Exploration companies often hesitate to invest because:

• Drilling is expensive.
• Success rates are uncertain.
• Geological risks are high.

Government co-funding significantly improves investor confidence.

Supporting Make in India

The programme encourages domestic production of:

• Offshore drilling equipment
• Pipelines
• Valves
• Subsea systems
• Engineering services
• Marine technology

This reduces dependence on imported equipment.

Employment Generation

Large-scale offshore exploration creates employment across sectors:

• Petroleum engineering
• Marine engineering
• Geophysics
• Shipbuilding
• Offshore logistics
• Manufacturing
• Research and development

Both direct and indirect employment opportunities are expected to increase.

Encouraging Foreign Investment

The scheme provides a stable policy framework that encourages:

• Global oil companies
• Technology providers
• Offshore engineering firms
• Service contractors

International participation can accelerate technology transfer and improve exploration efficiency.

Promoting Technological Innovation

Offshore exploration requires cutting-edge technologies such as:

• Artificial Intelligence (AI)
• Big Data analytics
• Seismic imaging
• Remote sensing
• Autonomous underwater vehicles (AUVs)
• Digital twin technology

The scheme promotes the adoption of advanced technologies to improve exploration success.

Challenges

Despite its ambitious vision, the scheme faces several challenges:

High Geological Risk

• Many exploration wells may not discover commercially viable reserves despite significant investment.

Environmental Concerns

Offshore drilling can impact:

• Marine biodiversity
• Coral ecosystems
• Fisheries
• Coastal ecology

Strict environmental safeguards and disaster preparedness are essential.

Capital-Intensive Operations

• Deepwater projects require substantial long-term investment and involve lengthy development timelines before production begins.

Global Energy Transition

• With increasing adoption of renewable energy and electric mobility, long-term demand for fossil fuels may moderate, requiring careful planning of investments.

Technological Dependence

• India still relies on foreign expertise for several advanced offshore technologies. Building indigenous capabilities will be critical for long-term success.

Way Forward

To maximise the benefits of Samudra Manthan, India should:

• Accelerate exploration in frontier offshore basins.
• Promote public-private partnerships (PPPs).
• Strengthen domestic manufacturing under Make in India.
• Invest in advanced offshore exploration technologies.
• Ensure robust environmental safeguards.
• Expand digital geological databases through the National Data Repository.
• Develop skilled human resources in offshore engineering and geosciences.
• Integrate offshore natural gas production with India’s clean energy transition.

Conclusion

Samudra Manthan marks one of India’s most ambitious initiatives to transform its offshore hydrocarbon sector. With a ₹84,084 crore investment extending to FY 2030–31, the scheme aims to unlock deepwater and frontier offshore resources through government-backed risk sharing, advanced seismic surveys, shared infrastructure, and indigenous technological development.

By targeting key basins such as the Krishna-Godavari, Cauvery, Mahanadi, and Andaman, the programme seeks to add over 600 MMTOE of hydrocarbon reserves, reduce import dependence, and strengthen long-term energy security.

If implemented effectively with environmental safeguards, technological innovation, and strong public-private collaboration, Samudra Manthan has the potential to position India as a globally competitive offshore energy nation while supporting sustainable economic growth and strategic energy resilience.