India's shaking up its offshore oil and gas game with the ₹84,084-crore Samudra Manthan National Offshore Exploration Scheme. Union Cabinet gave green light . Plan is to drill 60 deep-sea and ultra-deepwater wells over the next five years with government cash.
Government will foot half bill for each well,up to ₹650 crore,straight from national budget. Big shift in strategy. Officials say it's likely the first time globally a government is funding high-risk exploration like this.
Private firms usually shy away from risky ventures. Too much financial risk if no oil is found. They prefer to drill where they already know oil exists. Samudra Manthan wants to change that. Pushes investment in risky exploration — crucial for finding new resources.
Scheme lets companies with blocks from previous OALP rounds,or new ones,claim government support for exploration. Expected to draw global energy giants to India's shores,boosting energy security.
Prashant Vashisht from ICRA Ltd says scheme also covers offshore seismic data acquisition. Especially in areas that were off-limits before. This data is key for figuring out oil and gas potential. Aim is to boost production by 10-15 million tonnes annually,cutting import needs by 3-5%.
Over half the budget — about ₹43,200 crore — is for deep-sea drilling. Government's betting big on exploration. ₹10,000 crore earmarked for infrastructure like pipelines and processing plants to bring oil to market.
Rest of budget includes ₹28,534 crore for data gathering and ₹2,000 crore for oil and gas service zones. Key feature: Common Hub Infrastructure (CHI) to allow multiple operators to share facilities. Cuts costs,improves project feasibility.
India's dependency on imported crude has jumped from 77% to 88% in ten years. Also imports half its natural gas. Recent West Asia tensions show why India needs to up domestic production and reduce global supply risks.
Officials expect Samudra Manthan to revitalize exploration in India's offshore areas,bringing in international investment and expertise. But deep-sea drilling is risky. Not every well will hit oil or gas .
India's exploration policy has shifted lot since 1997. From production-sharing to revenue-sharing under HELP in 2016. Companies can now propose blocks anytime,with simpler licensing.
April 2025 saw Oilfields (Regulation and Development) Amendment Act come into play,streamlining regulations for exploration. Government's hybrid model pushes exploration in less commercialized basins,focusing on work commitments over revenue.
