Cabinet clears ₹84K cr scheme to boost offshore energy exploration

The National Offshore Exploration Scheme aims to boost domestic oil and gas production through seismic surveys, deepwater drilling and shared offshore infrastructure

The Union Cabinet chaired by Prime Minister (PM) Narendra Modi on Friday approved the national offshore exploration scheme, called “Samudra Manthan”. The Ministry of Petroleum & Natural Gas (MoPNG) will implement the ₹84,084 crore initiative, which is slated to run through 2030-31. 

The scheme aims at unlocking India’s vast offshore energy potential. It enables seismic data acquisition, processing, and interpretation, alongside accelerated deepwater and ultra-deepwater exploratory drilling. It also supports scientific drilling in frontier basins, the development of shared offshore production and evacuation infrastructure, and the establishment of an integrated Oil & Gas Manufacturing and Services Zone. 

"It marks a landmark step towards strengthening India's energy security, accelerating domestic exploration and production, promoting technological leadership, and advancing the vision of Viksit Bharat," the government said in a statement. 

 

The scheme also includes dedicated provisions for digital programme management, capacity building, technology adoption, stakeholder engagement, and international outreach, creating an integrated ecosystem to accelerate offshore exploration and production in the country. Samudra Manthan is expected to catalyse reserve accretion of over 600 million tonnes of oil equivalent (MTOE), increase offshore exploration activity, promote domestic oil and gas production, generate employment, strengthen indigenous manufacturing, and foster an ecosystem for offshore technologies and services. 

The scheme is also expected to stimulate significant investments across the exploration and production value chain, creating long-term opportunities for industry, innovation, and economic growth. 

Experts said the scheme highlights the government's seriousness in making India's exploration and production (E&P) sector stronger, as its provisions could reduce geological uncertainty, de-risk exploration, and lay the foundation for future discoveries. 

"Good results can catalyse greater private investments in the sector. The emphasis on shared infrastructure for production and evacuation is important, as it can improve project viability and create value by lowering costs for discoveries that may otherwise be considered marginal. This will support India's efforts to reduce import dependence while building a more resilient energy ecosystem,” said Rajnish Gupta, partner, tax and economic policy group, EY India. 

The government has undertaken a series of reform measures across the upstream sector, including opening almost the entire offshore acreage for exploration, modernising the legislative and contractual framework, and strengthening the National Data Repository.