The Union Cabinet on 31 July 2026 approved Samudra Manthan – National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum and Natural Gas. It has a Phase-I outlay of ₹84,084 crore for implementation up to FY 2030-31 and targets deepwater, ultra-deepwater and frontier offshore exploration.
The scheme shares risk with operators to draw sustained investment into frontier waters. Its stated aims are to de-risk offshore exploration, attract private investment, speed up domestic production, reduce import dependence and strengthen energy security.
India is the world's third-largest consumer of crude oil, and its annual import bill is nearly USD 144 billion, or about ₹13 lakh crore. A significant share of its crude oil and natural gas requirements is met through imports.
The eastern and western offshore basins extend to water depths of up to 3,000 metres and are estimated to hold over 5,600 MMTOE (Million Metric Tonnes of Oil Equivalent) of hydrocarbon potential. Finds in the Cauvery, Mahanadi and Andaman basins have supported this estimate.
Offshore exploration, however, is risky, capital-intensive and technologically complex. A single deepwater exploratory well costs about USD 125-150 million, and moving from the award of a block to commercial production typically takes 5-10 years. Existing fields decline naturally by around 6-7% every year, so new discoveries are needed just to sustain current output. Limited seismic coverage has restricted the identification of drill-ready prospects, and costly infrastructure has left many discoveries unproduced, particularly in the Mahanadi and Kutch basins.
The outlay is split into three heads. The first is offshore data acquisition, with ₹28,534 crore. Of this, ₹12,000 crore is for 2D seismic acquisition giving basin-wide coverage, and ₹12,534 crore for 3D seismic acquisition and other techniques. A further ₹4,000 crore will re-process older data held in the National Data Repository (NDR) and fund artificial intelligence tools to speed up processing and interpretation.
The second is offshore exploration and infrastructure-led production, with ₹55,200 crore:
The third is ₹350 crore for monitoring and support, covering digital interventions, evaluation, human resources, outreach and events. The scheme also provides for capacity building, technology adoption, stakeholder engagement and international cooperation. The basins of focus are Krishna-Godavari, Cauvery, Mahanadi and the Andaman region.
ONGC and Oil India are both active offshore. ONGC plans to drill 150 deepwater wells over seven years and assess nearly 5,600 MMTOE of potential resources. Oil India is exploring the Andaman region and has reported natural gas in Vijayapuram-2 and Vijayapuram-3.
On 25 July 2026, drilling began on the MN-DWN18-1-HD appraisal well in the Mahanadi Offshore Basin. It is the first of four planned deepwater wells there. An appraisal well is drilled to further evaluate the quality and commercial value of a discovery.
The scheme follows earlier reforms and geoscientific work, including Mission Anveshan and National Seismic Programme, the Extended Continental Shelf Survey, the NDR and the Hydrocarbon Resource Assessment Study. Under the Open Acreage Licensing Policy (OALP), 172 blocks covering nearly 3.8 lakh sq km have been awarded, with committed investments exceeding USD 4.3 billion. Nearly 81% of active exploration acreage has been awarded after 2014. In FY 2025-26, around 674 wells were drilled, five new discoveries were made and seven discoveries were monetised.
Subject to successful exploration, the government expects the scheme to:
It also expects large-scale employment, stronger indigenous manufacturing and a globally competitive offshore technology and services sector.
With reference to the Samudra Manthan – National Offshore Exploration Scheme, consider the following statements:
Which of the statements given above are correct?
Consider the following information about the allocation of the Phase-I outlay under the scheme:
| Component | Allocation | |
|---|---|---|
| 1. | Drilling of 60 deepwater and ultra-deepwater exploratory wells | ₹43,200 crore |
| 2. | Common offshore production and evacuation infrastructure | ₹2,000 crore |
| 3. | Integrated Oil and Gas Manufacturing and Services Zone | ₹10,000 crore |
In how many of the above rows is the given information correctly matched?
Consider the following statements:
Statement-I: The scheme provides for sharing of risk with operators in offshore exploration.
Statement-II: Offshore exploration is risky, capital-intensive and technologically complex, with a single deepwater exploratory well costing about USD 125-150 million.
Which one of the following is correct in respect of the above statements?
