Samudra Manthan: National Offshore Exploration Scheme Explained

India's offshore basins hold vast untapped hydrocarbon potential. A basin is a large natural depression in the earth where hydrocarbons collect.  Unlocking these resources requires modern exploration, reliable geological data, advanced drilling capabilities, and a strong domestic supply chain. To accelerate this effort, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved 'Samudra Manthan' – the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas with an approved outlay of Rs.84,084 crore for implementation up to FY 2030–31.

The Scheme translates the Prime Minister's vision, articulated from the Red Fort on Independence Day 2025, of a modern-day Samudra Manthan to unlock India's vast offshore energy potential. 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 Scheme encompasses a comprehensive set of interventions across the offshore exploration value chain. It provides for large-scale acquisition, processing and interpretation of high-quality seismic data, accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier basins, development of common offshore production and evacuation infrastructure, and establishment of an integrated Oil & Gas Manufacturing and Services Zone. 

 Why The Seas Hold the Key for India

India is the world’s third-largest consumer of crude oil. Its annual import bill is nearly USD 144 billion, or about ₹13 lakh crore. Recent global events have shown how vital uninterrupted energy access is. Higher domestic output has thus become critical for a rapidly growing economy.

The Offshore Opportunity

Much of India’s future oil and gas potential lies offshore. Deepwater and ultra-deepwater basins are sea zones with very high-water depth. India’s eastern and western offshore basins extend to water depths of up to 3,000 metres. They are estimated to hold over 5,600 MMTOE (Million Metric Tonnes of Oil Equivalent) of hydrocarbon potential. Recent finds in the Cauvery, Mahanadi, and Andaman basins have reinforced this promise.

The Challenge of Deepwater Exploration

Exploration is a costly and patient activity. Moving from the award of an exploration block to commercial production typically takes 5–10 years. A single deepwater exploratory well costs about USD 125–150 million. Such high stakes can discourage offshore exploration.

There is another reason why constant search matters. Existing fields witness a natural decline of around 6–7 percent every year. New discoveries are needed simply to sustain current output. Sustained exploration thus serves as a path to lasting self-reliance in energy.

 Inside the Samudra Manthan Mission

Samudra Manthan marks the transition from policy reform to mission-mode implementation. The scheme adopts a risk-sharing approach to attract sustained investment into frontier waters. It seeks to de-risk offshore ventures and encourage private capital, building enduring national capability across the value chain. In doing so, it converts a decade of reform into concrete action at sea.

Components of Samudra Manthan

Offshore exploration depends on reliable data, advanced technology, modern infrastructure, and a resilient supply chain. Samudra Manthan brings these elements together through four components.

1. Seismic Data Acquisition, Processing, and Interpretation

Limited offshore seismic coverage restricted the identification of drill-ready oil and gas prospects. The scheme funds large-scale 2D and 3D seismic surveys with an outlay of ₹28,534 crore. Advanced technology and Artificial Intelligence will speed up processing and interpretation. Older data in the National Data Repository will also be re-processed with modern tools.

2. Accelerated Offshore Exploration

High cost and long gestation make deepwater drilling a risky venture. To share this risk, the scheme allocates ₹43,200 crore for drilling 60 deepwater and ultra-deepwater wells. Financial support covers up to 50 percent of eligible drilling cost, or ₹675 crore per well, whichever is lower. The scheme is open to both public and private Exploration and Production (E&P) operators to increase oil and gas reserves. It will accelerate reserve accretion and unlock India’s deepwater potential.

3. Common Offshore Infrastructure

Many offshore discoveries remain unproduced due to costly infrastructure, particularly in the Mahanadi and Kutch basins. The scheme provides ₹10,000 crore for shared production and evacuation facilities in select basins. Common infrastructure lowers project costs and turns idle finds into producing fields.

4. Oil and Gas Manufacturing and Services Zone

Low domestic manufacturing increases exploration costs, import dependence, and foreign exchange outflow. In view of this, an integrated Oil and Gas Manufacturing and Services Zone will be established with ₹2,000 crore. It will build domestic capabilities in manufacturing, repair, warehousing, engineering, and services. This directly advances Make in India across the supply chain. An amount of ₹350 crore supports monitoring, digital interventions, evaluation, human resources, awareness and outreach, events, and media.

An Integrated Enabling Ecosystem

Beyond funding, the scheme creates a supportive environment for the entire value chain. Dedicated provisions cover:

• Digital programme management for transparent and efficient implementation
• Capacity building for professionals across the sector
• Adoption of cutting-edge technologies
• Continuous stakeholder engagement
• International outreach to attract global partners

 What Samudra Manthan Will Deliver

The scheme is designed to create value for the economy and future generations. Subject to exploration success, it is expected to bring wide-ranging gains:

• Larger Reserves: Increase of over 600 MMTOE of hydrocarbon reserves, expanding the resource base from 1.6 billion to 2.2 billion Tonnes of Oil Equivalent (TOE).
• Higher Output: Annual domestic production is targeted to rise from around 62 MMTOE to 80 MMTOE. Incremental production of 10–15 MMTOE is expected, with a peak potential of 20 MMTOE.
• Lower Import Bill: Additional output can cut crude imports by nearly ₹1 lakh crore every year, generating significant foreign exchange savings.
• Investment and Growth: The scheme will promote investments across the value chain and drive strong GDP expansion.

Together, these outcomes strengthen the country’s energy resilience. They also nurture technological leadership and long-term opportunities for industry and innovation.

A Series of Reforms

In recent years, India has steadily rebuilt its hydrocarbon exploration and production ecosystem. A series of structural reforms has made the sector open, transparent, and investor-friendly.

• Opening Up Offshore Acreage: More than 99 percent of the earlier “No-Go” areas have been removed. Over one million square kilometres of the Exclusive Economic Zone is now available for exploration. This zone is the sea area where India holds rights over natural resources.

• New Licensing Framework: The Hydrocarbon Exploration and Licensing Policy (HELP) was launched in 2016. Under it the Open Acreage Licensing Programme (OALP) was launched which replaced the old nomination-based approach. HELP provides lower levies, uniform licensing, revenue sharing, and incentives to promote hydrocarbon exploration and early production.
• Modern Law: The Oilfields (Regulation and Development) Amendment Act, 2025 provided contractual stability and stronger dispute resolution. It recognised integrated petroleum operations and created a contemporary regulatory architecture.
• Enabling Rules: The Petroleum and Natural Gas Rules, 2025 operationalised these changes. They promote ease of doing business and streamline the administration of petroleum leases.

Good exploration begins with good data. Seismic surveys send sound waves into the earth to map rock layers below the seabed. India has made sustained investments in such geoscientific knowledge through several national initiatives. These include Mission Anveshan, the National Seismic Programme, the Extended Continental Shelf Survey, the National Data Repository, and the Hydrocarbon Resource Assessment Study. Together, these have created one of the world’s most comprehensive geoscientific databases.

Infographic: Samudra Manthan' (National Offshore Exploration Scheme)

Answer Writing Q. Discuss the significance of the ‘Samudra Manthan’ – National Offshore Exploration Scheme in strengthening India’s energy security. Explain its major components and how it can reduce import dependence, promote domestic capabilities and support the vision of Viksit Bharat. (600 Words, 15 Marks)

Model Answer:

Energy is a critical input for India’s economic growth, but rising domestic demand and dependence on imported crude oil expose the economy to global price volatility, geopolitical disruptions and pressure on the foreign exchange bill. At the same time, India has substantial untapped hydrocarbon potential in its offshore basins, with the eastern and western offshore regions estimated to hold over 5,600 MMTOE of hydrocarbon potential. In this regard, ‘Samudra Manthan’ - National Offshore Exploration Scheme, approved on 31 July 2026 with a Phase-I outlay of ₹84,084 crore up to FY 2030-31, seeks to de-risk offshore exploration and convert India’s offshore potential into productive domestic resources.

Significance of ‘Samudra Manthan’ for India’s Energy Security

I. Unlocking Offshore Hydrocarbon Potential: The scheme seeks to unlock India’s deepwater and ultra-deepwater resources through modern exploration technologies. India’s offshore basins extend to depths of up to 3,000 metres and offer significant potential for new oil and gas discoveries.

II. Increasing Domestic Production: Subject to successful exploration, the scheme aims to add over 600 MMTOE of hydrocarbon reserves and increase annual domestic production from around 62 MMTOE to 80 MMTOE. This can strengthen the domestic energy supply and reduce vulnerability to disruptions in global energy markets.

III. Reducing Import Dependence: Higher domestic production can reduce crude oil imports and is expected to potentially lower the import bill by nearly ₹1 lakh crore annually, thereby generating foreign exchange savings.

IV. De-risking Offshore Exploration: Deepwater exploration involves high costs and long gestation periods, with a single exploratory well costing around USD 125-150 million. The scheme adopts a risk-sharing approach to encourage both public and private investment in frontier offshore areas.

V. Strengthening the Energy Ecosystem: The scheme goes beyond exploration by developing shared infrastructure, domestic manufacturing and services, technology adoption and capacity building. Thus, it aims to create a globally competitive offshore energy ecosystem.

Major Components of the Scheme

I. Modern Offshore Seismic Data: An allocation of ₹28,534 crore has been provided for large-scale 2D and 3D seismic surveys, re-processing of National Data Repository data and use of Artificial Intelligence for faster interpretation.

II. Accelerated Offshore Exploration: ₹43,200 crore has been allocated for drilling 60 deepwater and ultra-deepwater wells. Government support will cover up to 50% of eligible drilling costs, subject to a maximum of ₹675 crore per well, helping reduce exploration risks.

III. Common Offshore Infrastructure: ₹10,000 crore will support shared production and evacuation infrastructure, particularly helping commercialise discoveries that remain unproduced because of high infrastructure costs.

IV. Oil and Gas Manufacturing & Services Zones: ₹2,000 crore will support domestic manufacturing, repair, warehousing and engineering capabilities, strengthening localisation and advancing Make in India across the offshore value chain.

Contribution towards Viksit Bharat

The scheme can generate employment across exploration, production and allied activities while attracting investment across the energy value chain. It can strengthen Atmanirbhar Bharat by developing indigenous offshore technologies and manufacturing capabilities. Further, more than 99% of earlier “No-Go” areas have been removed, making over one million square kilometres of India’s Exclusive Economic Zone available for exploration.

By expanding the resource base from 1.6 billion to 2.2 billion tonnes of oil equivalent, the scheme can strengthen India’s long-term energy resilience and support economic growth.

In conclusion, ‘Samudra Manthan’ represents a shift from incremental policy reforms to mission-mode offshore exploration. By combining seismic data, risk-sharing, deepwater drilling, common infrastructure and domestic manufacturing, it can unlock India’s offshore potential, reduce import dependence and strengthen energy resilience. Its broader contribution to investment, employment, technological capability and Make in India can make it an important pillar of India’s journey towards Atmanirbhar Bharat and Viksit Bharat.

Objective Practice Questions: RBI Grade B, NABARD Grade A

Q1. With reference to the Samudra Manthan National Offshore Exploration Scheme approved recently, consider the following:

1. It was approved on 31 July 2026.
2. It is an initiative of the Ministry of Petroleum and Natural Gas.
3. Its Phase-I outlay is ₹84,084 crore up to FY 2030-31.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
E. 3 only

Answer: D
All three are correct. The scheme was approved on 31 July 2026 by the Ministry of Petroleum and Natural Gas, with a Phase-I outlay of ₹84,084 crore up to FY 2030-31.

Q2. Under Samudra Manthan, the component "Accelerated Offshore Exploration" has been allocated ₹43,200 crore for drilling deepwater and ultra-deepwater wells. How many such wells is this component intended to fund?

A. 40
B. 50
C. 60
D. 172
E. 674

Answer: C
The scheme allocates ₹43,200 crore for drilling 60 deepwater and ultra-deepwater wells. Financial support covers up to 50 percent of eligible drilling cost, or ₹675 crore per well, whichever is lower.

Q3. Consider the following component-wise allocations under Samudra Manthan:

1. Seismic Data Acquisition, Processing and Interpretation: ₹28,534 crore
2. Common Offshore Infrastructure: ₹10,000 crore
3. Oil and Gas Manufacturing and Services Zone: ₹2,000 crore
4. Monitoring and Support Activities: ₹350 crore

Which of the above allocations is/are correctly matched?

A. 1 and 3 only
B. 2 and 4 only
C. 1, 2 and 4 only
D. 2, 3 and 4 only
E. 1, 2, 3 and 4

Answer: E
All four are correctly matched. Seismic data acquisition gets ₹28,534 crore, common offshore infrastructure gets ₹10,000 crore, the manufacturing and services zone gets ₹2,000 crore, and monitoring and support activities get ₹350 crore.

Q4. Which of the following statements regarding the reforms preceding Samudra Manthan is NOT correct?

A. The Hydrocarbon Exploration and Licensing Policy (HELP) was launched in 2016.
B. India moved from Production Sharing Contracts to Revenue Sharing Contracts in 2016.
C. Under the Open Acreage Licensing Programme, 172 blocks covering nearly 3.8 lakh square kilometres have been awarded.
D. More than 99 percent of the earlier "No-Go" areas have been removed.
E. The Oilfields (Regulation and Development) Amendment Act was passed in 2016.

Answer: E
The Oilfields (Regulation and Development) Amendment Act was passed in 2025, not 2016. The other statements are correct, including HELP and the shift to Revenue Sharing Contracts in 2016, the award of 172 OALP blocks over about 3.8 lakh square kilometres, and the removal of over 99 percent of "No-Go" areas.

Q5. As per the expected deliverables of Samudra Manthan, consider the following:

1. It aims to add over 600 MMTOE of hydrocarbon reserves, expanding the resource base from 1.6 billion to 2.2 billion TOE.
2. Annual domestic production is targeted to rise from around 62 MMTOE to 80 MMTOE.
3. Additional output can cut crude imports by nearly ₹1 lakh crore every year.

Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. 1 and 2 only
D. 2 and 3 only
E. 1, 2 and 3

Answer: E
All three are correct. The scheme targets an increase of over 600 MMTOE of reserves (raising the base from 1.6 billion to 2.2 billion TOE), a rise in annual domestic production from about 62 MMTOE to 80 MMTOE, and a cut in crude imports of nearly ₹1 lakh crore per year.

Source: PIB

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