Samudra Manthan Scheme: National Offshore Exploration Mission to Strengthen India's Energy Security and Deepwater Hydrocarbon Potential

Recent Developments:

• The Union Cabinet has approved the National Offshore Exploration Scheme (NOES), titled Samudra Manthan, with a total outlay of ₹84,084 crore for implementation up to FY 2030-31.
• The scheme aims to accelerate offshore oil and natural gas exploration, particularly in deepwater and ultra-deepwater basins, while reducing import dependence and strengthening India's long-term energy security.

Need for the National Offshore Exploration Scheme:

India's Energy Import Dependence:

• India is the third-largest consumer of crude oil globally and one of the largest consumers of natural gas.
• More than 88% of India's crude oil requirement is met through imports, while nearly 50% of natural gas demand depends on imported supplies.
• Domestic oil and gas production has remained largely stagnant, whereas mature producing fields experience an annual natural production decline of nearly 6–7%.
• Geopolitical disruptions, particularly in West Asia, expose India to supply interruptions and international price volatility.
• The scheme seeks to reduce these vulnerabilities by expanding domestic offshore hydrocarbon exploration and increasing indigenous production.

Key Components of Samudra Manthan:

Deepwater, Ultra-Deepwater Exploratory Drilling:

• A financial allocation of ₹43,200 crore has been provided for drilling 60 exploratory wells in deepwater and ultra-deepwater offshore areas.
• Government assistance will cover up to 50% of the eligible drilling expenditure or ₹675 crore per well, whichever is lower.
• The component is designed to reduce financial risks associated with capital-intensive and uncertain offshore exploration.

Offshore Data Acquisition:

• An allocation of ₹28,534 crore has been earmarked for large-scale acquisition, processing and interpretation of high-quality seismic data.
• The programme includes scientific drilling in frontier sedimentary basins to minimise geological uncertainty and improve exploration success rates.
• The initiative also supports a data-driven exploration ecosystem, enabling multiple operators to interpret geological information and accelerate discoveries.

Common Offshore Infrastructure:

• An investment of ₹10,000 crore has been approved for developing common offshore production, processing and evacuation infrastructure.
• Shared infrastructure is expected to improve commercial viability by reducing development costs for discovered hydrocarbon fields.

Oil and Gas Manufacturing, Services Zones:

• An allocation of ₹2,000 crore has been approved for establishing integrated manufacturing and service hubs.
• The component seeks to promote domestic manufacturing, localisation of critical offshore equipment and development of indigenous technological capabilities.

Major Objectives:

Resource Augmentation, Production Enhancement:

• The scheme aims to add more than 600 Million Metric Tonnes of Oil Equivalent (MMTOE) to India's hydrocarbon reserves.
• Domestic hydrocarbon production is targeted to increase from nearly 62 MTOE to around 80 MTOE annually, subject to successful exploration outcomes.
• India's estimated hydrocarbon resource base is expected to expand from nearly 1,600 MTOE to around 2,200 MTOE.

Energy Security, Economic Growth:

• Annual crude oil imports may decline by nearly ₹1 lakh crore, resulting in substantial foreign exchange savings.
• The scheme seeks to attract significant investments across the Exploration and Production (E&P) value chain.
• It also aims to stimulate technological innovation, employment generation and industrial growth in the upstream petroleum sector.

Priority Exploration Areas and Need for Government Support:

Priority Offshore Basins:

• The scheme prioritises exploration in frontier offshore sedimentary basins, including:
• Krishna-Godavari Basin.
• Cauvery Basin.
• Mahanadi Basin.
• Andaman Offshore Region.
• These basins possess significant untapped hydrocarbon potential but require advanced exploration technologies and large capital investments.

Need for Government Support:

• Deepwater drilling generally costs between US$100–250 million per exploration well.
• Commercial production usually requires a long gestation period of nearly 5–10 years.
• Exploration involves substantial geological uncertainty, and commercially viable discoveries cannot be guaranteed.
• Government-backed risk-sharing is expected to encourage greater participation by both public and private upstream companies.

Expected Benefits:

Energy Security, Strategic Gains:

• Reduced dependence on imported crude oil and natural gas.
• Greater resilience against global energy supply disruptions and international price shocks.
• Improved long-term strategic energy security.

Economic Benefits:

• Potential annual foreign exchange savings of nearly ₹1 lakh crore through lower crude oil imports.
• Increased domestic and foreign investment across the hydrocarbon exploration value chain.
• Large-scale employment generation in exploration, offshore engineering, manufacturing and specialised petroleum services.

Industrial Development:

• Development of a domestic manufacturing ecosystem for offshore equipment and specialised services.
• Enhanced localisation of critical technologies under the Atmanirbhar Bharat initiative.
• Reduced dependence on imported offshore exploration equipment.

Technology, Capacity Building:

• Adoption of advanced seismic imaging, digital programme management, deepwater drilling and reservoir evaluation technologies.
• Strengthening India's scientific, engineering and technological capabilities in offshore hydrocarbon exploration.

Challenges and Associated Reforms:

Major Challenges:

• High geological uncertainty and significant exploration failure risks.
• Extremely capital-intensive nature of offshore exploration and drilling.
• Requirement of sophisticated technology, specialised manpower and advanced offshore infrastructure.
• Environmental concerns relating to offshore drilling operations and marine ecosystems.
• Commercial viability of discovered hydrocarbon reserves remains uncertain even after successful exploration.

Expert Assessment:

• Extensive seismic surveys and scientific exploratory drilling can substantially reduce geological uncertainty.
• Improved geological information is expected to enhance investor confidence and encourage greater private participation.
• Incremental domestic production may reduce India's oil and gas import dependence by approximately 3–5% over time.

Recent Government Reforms Supporting the Scheme:

• Opening nearly the entire offshore exploration acreage for hydrocarbon exploration.
• Modernisation of the legislative, regulatory and contractual framework governing upstream petroleum activities.
• Strengthening the National Data Repository (NDR) to improve accessibility and quality of exploration data.
• Promotion of advanced exploration technologies, digital programme management and data-driven decision-making.
• The concept of Samudra Manthan was first articulated by the Prime Minister during the 2025 Independence Day Address, highlighting the need to unlock India's offshore energy potential through modern exploration initiatives.

Conclusion:

Strategic Significance:

• Samudra Manthan represents a major strategic shift towards unlocking India's offshore hydrocarbon resources through public investment, risk-sharing mechanisms, advanced technology and common infrastructure development.
• Although offshore exploration involves significant geological and commercial uncertainty, successful implementation can substantially strengthen energy security, reduce import dependence, promote Atmanirbhar Bharat, enhance domestic manufacturing capabilities and improve India's long-term energy resilience.

Value Addition for UPSC:

Important Organisations:

• Ministry of Petroleum and Natural Gas (MoPNG).
• Directorate General of Hydrocarbons (DGH).
• Oil and Natural Gas Corporation (ONGC).
• Oil India Limited (OIL).
• National Data Repository (NDR).

Key Concepts:

• Offshore Exploration: Exploration of hydrocarbon resources beneath the seabed.
• Deepwater Exploration: Exploration in water depths generally exceeding 500 metres.
• Ultra-Deepwater Exploration: Exploration conducted in water depths generally exceeding 1,500 metres.
• MMTOE (Million Metric Tonnes of Oil Equivalent): Standard unit used to compare different energy resources on a common energy-equivalent basis.
• Seismic Survey: A geophysical technique using reflected seismic waves to identify underground hydrocarbon-bearing geological structures