The Union Cabinet has approved the petroleum ministry’s ambitious Samudra Manthan scheme, officially the National Offshore Exploration Scheme, with an outlay of Rs 84,084 crore to accelerate deepwater oil and gas exploration and draw global energy companies to India’s offshore basins.
The scheme is designed to reduce the financial risks of deepwater and ultra‑deepwater exploration, which involve high capital costs and geological uncertainty. Under the earlier framework, the government had indicated reimbursement of up to 50% of exploratory well costs and partial support for 3D seismic surveys, with final parameters to be detailed by the ministry.
The move builds on groundwork already underway, with ONGC spudding its first deepwater exploratory well in the Mahanadi basin earlier this month under the scheme. The initiative is part of India’s broader push to reduce dependence on imported crude oil, which currently accounts for 85% of consumption.
Deepwater exploration remains costly, with a single exploratory well typically requiring Rs 1,000–1,200 crore, while ultra‑deepwater wells cost significantly more. The government is currently auctioning 18 deepwater and ultra‑deepwater blocks under OALP, with the bid deadline extended to September 17.
The approval came alongside other Cabinet decisions, including continuation of PM‑KISAN, launch of the Pradhan Mantri Surya Sarovar Yojana for floating solar, and a revamped Khelo India scheme with enhanced support for National Sports Federations.
