Cabinet Approves ₹84,084 Cr For Samudra Manthan Scheme To Boost Offshore Oil, Gas Exploration

The Union Cabinet on Friday approved 'Samudra Manthan', the National Offshore Exploration Scheme, with a total outlay of ₹84,084 crore to be implemented until FY2030-31.

The initiative is intended to accelerate offshore oil and gas exploration, improve domestic production and strengthen India's long-term energy security.

The government said the programme is aimed at advancing domestic exploration, promoting technological capability and supporting the broader goal of Viksit Bharat.

India's eastern and western offshore basins are estimated to contain more than 5,600 MMTOE of hydrocarbon resources.

Focus On Exploration, Infra

The Cabinet said the scheme covers the entire offshore exploration value chain.

It includes large-scale acquisition, processing and interpretation of seismic data, accelerated deepwater and ultra-deepwater exploratory drilling, and scientific drilling in frontier basins.

It also includes development of common offshore production and evacuation infrastructure, and the establishment of an integrated Oil & Gas Manufacturing and Services Zone.

The programme also makes provisions for digital programme management, technology adoption, capacity building, stakeholder engagement and international outreach to create an integrated ecosystem for offshore exploration and production.

The government expects the initiative to help add more than 600 Million Metric Tonnes of Oil Equivalent (MMTOE) to hydrocarbon reserves, increase offshore exploration activity, boost domestic oil and gas production, generate employment and encourage indigenous manufacturing under the Make in India and Atmanirbhar Bharat initiatives.

The Cabinet also said the scheme is expected to stimulate investments across the exploration and production value chain while strengthening India's technological capabilities in offshore energy.

ONGC's Deepwater Campaign

The scheme will also seek to address infrastructure and supply-chain constraints affecting offshore projects.

Around ₹10,000 crore have been earmarked for developing common evacuation infrastructure in selected offshore basins, including the Mahanadi and Kutch regions, where commercially viable discoveries have remained stranded because of high development costs, as per a report by CNBC-TV18.

Another ₹2,000 crore will be reportedly allocated towards establishing an Oil and Gas Manufacturing and Services Zone to strengthen domestic manufacturing, engineering, repair, warehousing and service capabilities for the sector.

The mission has already begun moving into the execution phase. On July 25, state-run Oil and Natural Gas Corporation (ONGC) spudded its first deepwater exploratory well in the Mahanadi Offshore Basin under the Samudra Manthan campaign.

The well, located off the Odisha coast, marks the start of ONGC's deep and ultra-deepwater exploration programme following recent discoveries in the Utkal and Konark blocks.