Samudra Manthan – National Offshore Exploration Scheme

Key Highlights:

• The Samudra Manthan – National Offshore Exploration Scheme was approved on July 31, 2026.
• It has a Phase-I outlay of ₹84,084 crore up to FY 2030–31 to unlock India's vast offshore hydrocarbon potential.
• The scheme aims to add over 600 MMTOE of hydrocarbon reserves and increase domestic production.
• It seeks to reduce India's annual crude oil import bill, which is nearly USD 144 billion.
• The initiative focuses on accelerating exploration, deploying modern technology, creating shared infrastructure, and strengthening domestic manufacturing.

Detailed Insights:

• The scheme addresses India's rising energy demand and significant import dependence for crude oil and natural gas.
• India's deepwater and ultra-deepwater offshore basins are estimated to hold over 5,600 MMTOE of hydrocarbon potential.
• It adopts a risk-sharing approach, providing financial support for drilling 60 deepwater/ultra-deepwater wells (up to 50% of eligible cost or ₹675 crore per well).
• Key components include large-scale 2D and 3D seismic surveys, accelerated exploration, common offshore infrastructure, and an Oil and Gas Manufacturing and Services Zone.
• Expected outcomes include increasing India's hydrocarbon reserves from 1.6 to 2.2 billion TOE and annual production from 62 to 80 MMTOE.
• The scheme builds upon reforms like the removal of "No-Go" areas and the Hydrocarbon Exploration and Licensing Policy (HELP).
• It also leverages the shift from Production Sharing Contracts (PSC) to Revenue Sharing Contracts (RSC) for a simpler fiscal framework.
• The Oilfields (Regulation and Development) Amendment Act, 2025, and Petroleum and Natural Gas Rules, 2025, provide contractual stability and streamline administration.
• Drilling of the first appraisal well under the scheme commenced in the Mahanadi Offshore Basin on July 25, 2026.

Key Concepts Involved:

• Hydrocarbon Exploration and Licensing Policy (HELP): A policy introduced in 2016 for uniform licensing, revenue sharing, and marketing freedom for crude oil and natural gas.
• Open Acreage Licensing Programme (OALP): A mechanism under HELP allowing companies to carve out exploration blocks from available areas.
• Revenue Sharing Contract (RSC): A fiscal framework where the contractor bears exploration risks and costs, sharing revenue with the government.
• MMTOE (Million Metric Tonnes of Oil Equivalent): A unit used to compare different energy sources based on their energy content.