SYLLABUS
GS-3: Infrastructure: Energy; Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: The Union Cabinet has approved Samudra Manthan – the National Offshore Exploration Scheme – with an outlay of Rs. 84,084 crore for implementation up to FY 2030–31.
About Samudra Manthan (National Offshore Exploration Scheme)
• Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas (MoPNG) approved by the Union Cabinet.
• The Scheme translates the Prime Minister’s vision, articulated from the Red Fort during the Independence Day address in 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 entire offshore exploration value chain, creating an integrated ecosystem to accelerate offshore exploration and production in the country.
Key Features of the Scheme
• Offshore Seismic Data Acquisition: Large-scale acquisition, processing and interpretation of high- quality seismic data, along with scientific drilling in frontier offshore basins to improve geological understanding.
- Offshore data acquisition has been allocated ₹28,534 crore.
• Deepwater and Ultra-Deepwater Exploratory Drilling: Accelerated drilling of around 60 deepwater and ultra-deepwater exploratory wells, with Government support of up to 50% of eligible drilling cost, subject to a ceiling of ₹675 crore per well.
- ₹43,200 crore has been allocated for exploratory drilling.
• Common Offshore Infrastructure: Development of common offshore production and evacuation infrastructure to facilitate commercialisation of discoveries.
- Shared infrastructure is expected to improve project viability by reducing development costs, with an allocation of ₹10,000 crore.
• Oil & Gas Manufacturing and Services Zones: Establishment of integrated Oil & Gas Manufacturing and Services Zones to promote domestic manufacturing and localisation of critical offshore equipment and specialised services.
- The initiative will strengthen indigenous manufacturing under Make in India and Atmanirbhar Bharat, with an allocation of ₹2,000 crore.
• Integrated Offshore Exploration Ecosystem: The Scheme includes dedicated provisions for digital programme management, capacity building, technology adoption, stakeholder engagement, and international outreach.
- These measures aim to create an integrated ecosystem for offshore exploration and production in the country.
Need for the Scheme
• India’s dependence on imported crude oil has increased from 77% to about 88% over the past decade.
• Nearly 50% of India’s natural gas requirement is imported.
• Domestic crude oil and natural gas production has remained under pressure due to the gradual decline of ageing oil and gas fields.
• Large parts of India’s offshore sedimentary basins, particularly deepwater and ultra-deepwater areas, remain underexplored.
• Offshore hydrocarbon exploration is highly capital-intensive, involves long gestation periods and carries significant geological and commercial risks.
• Drilling in ultra-deepwater blocks (water depths exceeding 1,500 metres) can cost ₹950 crore to ₹2,400 crore per well, with no guarantee of commercially viable discoveries.
• High exploration costs and uncertain outcomes have limited investment in frontier offshore exploration.
• India’s growing energy demand requires new domestic sources of crude oil and natural gas to reduce dependence on imports and improve energy security.
Significance of the Scheme
• Strengthens Energy Security: Reduces dependence on imported crude oil and natural gas and improves resilience against global energy market volatility.
• Unlocks Offshore Hydrocarbon Resources: Accelerates deepwater, ultra-deepwater and frontier basin exploration and facilitates reserve accretion of over 600 Million Metric Tonnes of Oil Equivalent (MMTOE).
• Promotes Domestic Production and Technological Capabilities: Increases domestic oil and natural gas production and promotes advanced offshore exploration technologies.
• Strengthens Make in India and Employment: Strengthens indigenous manufacturing under Make in India and Atmanirbhar Bharat, promotes localisation of offshore equipment and services, and generates large-scale employment.
• Promotes Investment and Economic Growth: Stimulates significant investments across the exploration and production value chain, develops common offshore infrastructure, and creates long-term opportunities for industry, innovation and economic growth.