The National Offshore Exploration Scheme, called Samudra Manthan, will cover seismic data acquisition, deepwater exploratory drilling, development of common offshore production infrastructure and the setting up of oil and gas manufacturing and services zones, according to an official statement.
ET was the first to report on Tuesday that the government planned to launch such a scheme.
The scheme will be implemented through 2030-31, according to the statement.
Its ₹84,084-crore outlay includes dedicated provisions for digital programme management, capacity building, technology adoption and creating an ecosystem to accelerate offshore exploration and production in the country, the government said.
“Samudra Manthan is expected to catalyse reserve accretion of over 600 million metric tonnes of oil equivalent (MMTOE), substantially increase offshore exploration activity, and promote higher domestic oil and gas production,” it said.
A portion of the outlay will be used to bear up to half the cost of exploratory drilling in deep and ultra-deep waters, according to people familiar with the matter.
The Samudra Manthan mission builds on a series of upstream reforms the government has undertaken over the past decade, including opening almost the entire offshore acreage for exploration, modernising the legislative and contractual framework, and strengthening National Data Repository.
High costs and India’s modest exploration success have long kept foreign firms away. Drilling a single deepwater exploratory well can cost ₹1,000-1,200 crore, depending on geological complexity. By funding part of the exploration cost, the government aims to de-risk offshore exploration for companies.
Domestic oil and gas production has been declining for years due to ageing fields and the absence of any major discovery over the past two decades, increasing the country’s dependence on imports. India sees significant potential in offshore exploration.
The government is currently auctioning 18 deepwater and ultra-deepwater blocks under the Open Acreage Licensing Programme, with bids due by September 17.
Prime Minister Narendra Modi first announced the government’s plan to launch the Samudra Manthan Mission in his Independence Day speech last year.