Govt nod to Rs 84K-cr scheme to boost offshore oil & gas exploration, Pg 19

Key Highlights:

• The Union Cabinet approved the Samudra Manthan – National Offshore Exploration Scheme with an outlay of ₹84,084 crore to boost offshore oil and gas exploration and production.
• The scheme aims to reduce India's import dependence on crude oil and natural gas by accelerating exploration in deep-sea and ultra-deep-sea offshore areas.
• Around ₹43,200 crore has been allocated to support exploratory drilling, while ₹28,534 crore will be used for offshore data acquisition to improve exploration success.
• Another ₹10,000 crore will fund common infrastructure, with ₹2,000 crore earmarked for developing oil and gas manufacturing and services hubs.
• The scheme adopts a risk-sharing approach, providing financial support of up to 50% of drilling costs or ₹675 crore per well, whichever is lower.

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Detailed Insights:

• India imports over 88% of its crude oil and nearly 50% of its natural gas, making energy security a key strategic concern.
• The scheme seeks to unlock hydrocarbon potential in frontier offshore basins such as the Krishna-Godavari, Cauvery, Mahanadi and Andaman basins, which require advanced deep-water technologies.
• Financial assistance will support seismic surveys, digital data interpretation, exploratory drilling and the development of offshore exploration infrastructure.
• The initiative also envisages establishing an integrated Oil & Gas Manufacturing and Services Zone to strengthen domestic capabilities and reduce dependence on imported equipment.
• By lowering exploration risks for private and public sector companies, the government aims to attract greater investment in India's upstream hydrocarbon sector.
• Increased domestic production is expected to enhance energy security, reduce the import bill and improve resilience against global energy price volatility.

Key Concepts Involved:

• Samudra Manthan – National Offshore Exploration Scheme: A Central Sector Scheme to promote offshore hydrocarbon exploration through financial and infrastructure support.
• Offshore Exploration: The search for oil and natural gas reserves beneath the seabed using geological surveys and exploratory drilling.
• Hydrocarbons: Naturally occurring compounds such as crude oil and natural gas that serve as primary commercial energy resources.
• Deep-water Drilling: Exploration and extraction of hydrocarbons from offshore regions with significant water depth using specialised technology.