Cabinet Approves Rs 84,000 Crore Initiative to Accelerate Offshore Energy Exploration

The Union Cabinet, led by Prime Minister Narendra Modi, on Friday approved the "Samudra Manthan" National Offshore Exploration Scheme, a major initiative worth ₹84,084 crore aimed at strengthening India's offshore energy sector. The programme, to be implemented by the Ministry of Petroleum and Natural Gas (MoPNG), will remain in effect until 2030-31.

Designed to unlock India's offshore hydrocarbon resources, the scheme focuses on expanding exploration through advanced seismic surveys, data processing and interpretation, as well as faster exploration drilling in deepwater and ultra-deepwater regions. It also includes scientific drilling in unexplored sedimentary basins, development of shared offshore production and evacuation infrastructure, and the creation of an integrated Oil and Gas Manufacturing and Services Zone.

According to the government, Samudra Manthan represents a significant milestone in strengthening India's energy security. It is expected to boost domestic oil and gas exploration, encourage technological innovation, and contribute to the broader vision of Viksit Bharat by enhancing the country's self-reliance in the energy sector.

Beyond exploration activities, the scheme provides dedicated support for digital programme management, skill development, adoption of modern technologies, stakeholder collaboration, and global outreach. These measures are intended to build a comprehensive ecosystem that accelerates offshore exploration and production across the country.

Officials estimate that the initiative could help add more than 600 million tonnes of oil equivalent (MTOE) to India's reserves. It is also expected to increase offshore exploration activity, raise domestic crude oil and natural gas production, generate employment opportunities, strengthen indigenous manufacturing capabilities, and promote the growth of offshore technology and service industries. The programme is also likely to attract substantial investments throughout the exploration and production value chain, creating long-term opportunities for businesses while supporting innovation and economic expansion.

Industry experts believe the initiative reflects the government's strong commitment to revitalising India's exploration and production (E&P) sector. By reducing geological risks and improving access to reliable exploration data, the scheme could pave the way for new hydrocarbon discoveries and encourage greater participation from private investors.

Rajnish Gupta, Partner in the Tax and Economic Policy Group at EY India, said the emphasis on shared production and evacuation infrastructure is particularly significant. He noted that such infrastructure can improve the commercial viability of offshore projects by lowering development costs, making even smaller discoveries economically feasible. According to him, this approach will support India's efforts to reduce its dependence on energy imports while building a stronger and more resilient energy ecosystem.

The approval of Samudra Manthan comes as part of a broader series of reforms undertaken by the government in the upstream oil and gas sector. These measures include opening nearly all offshore acreage for exploration, updating the legal and contractual framework governing exploration activities, and enhancing the National Data Repository to improve access to geological information for investors and exploration companies.

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