SYLLABUS

GS-3: Infrastructure: Energy; Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context: The Union Cabinet has approved Samudra Manthan – the National Offshore Exploration Scheme - with an outlay of Rs. 84,084 crore for implementation up to FY 2030–31.

About Samudra Manthan (National Offshore Exploration Scheme)

• Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas (MoPNG) approved by the Union Cabinet.

• The Scheme translates the Prime Minister's vision, articulated from the Red Fort during the Independence Day address in 2025, of a modern-day Samudra Manthan to unlock India's vast offshore energy potential.

• It marks a landmark step towards strengthening India's energy security, accelerating domestic exploration and production, promoting technological leadership and advancing the vision of Viksit Bharat.

• The Scheme encompasses a comprehensive set of interventions across the entire offshore exploration value chain, creating an integrated ecosystem to accelerate offshore exploration and production in the country.

Key Features of the Scheme

• Offshore Seismic Data Acquisition: Large-scale acquisition, processing and interpretation of high- quality seismic data, along with scientific drilling in frontier offshore basins to improve geological understanding.

• Offshore data acquisition has been allocated ₹28,534 crore.

• Deepwater and Ultra-Deepwater Exploratory Drilling: Accelerated drilling of around 60 deepwater and ultra-deepwater exploratory wells, with Government support of up to 50% of eligible drilling cost, subject to a ceiling of ₹675 crore per well.

• ₹43,200 crore has been allocated for exploratory drilling.

• Common Offshore Infrastructure: Development of common offshore production and evacuation infrastructure to facilitate commercialisation of discoveries. 

• Shared infrastructure is expected to improve project viability by reducing development costs, with an allocation of ₹10,000 crore.

• Oil & Gas Manufacturing and Services Zones: Establishment of integrated Oil & Gas Manufacturing and Services Zones to promote domestic manufacturing and localisation of critical offshore equipment and specialised services. 

• The initiative will strengthen indigenous manufacturing under Make in India and Atmanirbhar Bharat, with an allocation of ₹2,000 crore.

• Integrated Offshore Exploration Ecosystem: The Scheme includes dedicated provisions for digital programme management, capacity building, technology adoption, stakeholder engagement, and international outreach. 

• These measures aim to create an integrated ecosystem for offshore exploration and production in the country.

Need for the Scheme

• India's dependence on imported crude oil has increased from 77% to about 88% over the past decade.

• Nearly 50% of India's natural gas requirement is imported.

• Domestic crude oil and natural gas production has remained under pressure due to the gradual decline of ageing oil and gas fields.

• Large parts of India's offshore sedimentary basins, particularly deepwater and ultra-deepwater areas, remain underexplored.

• Offshore hydrocarbon exploration is highly capital-intensive, involves long gestation periods and carries significant geological and commercial risks.

• Drilling in ultra-deepwater blocks (water depths exceeding 1,500 metres) can cost ₹950 crore to ₹2,400 crore per well, with no guarantee of commercially viable discoveries.

• High exploration costs and uncertain outcomes have limited investment in frontier offshore exploration.

• India's growing energy demand requires new domestic sources of crude oil and natural gas to reduce dependence on imports and improve energy security.

Significance of the Scheme

• Strengthens Energy Security: Reduces dependence on imported crude oil and natural gas and improves resilience against global energy market volatility. 

• Unlocks Offshore Hydrocarbon Resources: Accelerates deepwater, ultra-deepwater and frontier basin exploration and facilitates reserve accretion of over 600 Million Metric Tonnes of Oil Equivalent (MMTOE). 

• Promotes Domestic Production and Technological Capabilities: Increases domestic oil and natural gas production and promotes advanced offshore exploration technologies. 

• Strengthens Make in India and Employment: Strengthens indigenous manufacturing under Make in India and Atmanirbhar Bharat, promotes localisation of offshore equipment and services, and generates large-scale employment. 

• Promotes Investment and Economic Growth: Stimulates significant investments across the exploration and production value chain, develops common offshore infrastructure, and creates long-term opportunities for industry, innovation and economic growth.