Oil Ministry Prepares Year-Wise Roadmap for $8.8 Billion Samudra Manthan Offshore Exploration Scheme

The Oil Ministry is currently working on a year-wise execution roadmap for drilling, seismic surveys, and rig deployment under the $8.8 billion Samudra Manthan, or the National Offshore Exploration Scheme. Leveraging this funding boost, the ministry aims to secure higher oil and gas production in deep and ultra-deep waters.

Oil Minister Hardeep Singh Puri met with top ministry officials and public sector undertaking executives to review action taken on decisions from recent brainstorming sessions held in Gurugram and Duliajan. During the meetings, progress on the implementation of the Samudra Manthan scheme was discussed.

The ministry has decided to pursue a year-wise roadmap to drive accelerated drilling, seismic surveys, and rig deployment across the KG, Mahanadi, Andaman, and Cauvery basins. State-run exploration and production majors, ONGC and Oil India (OIL), will serve as the driving force behind the scheme. A dedicated ONGC-led joint venture for drillship capacity is backing this effort to address key infrastructure bottlenecks through shared investment and long-term chartering.

A recent report by Motilal Oswal Financial Services noted that ONGC is expected to play a major role in the initiative. According to the brokerage, ONGC anticipates oil prices to settle at $75 per barrel in the long run, which will help the company undertake exploration activities—including deep-water exploration—that were not financially viable when prices ranged between $60 and $65.

The government has allocated an ₹84,000 crore fund, with Phase-1 valid until FY31, making the opportunity lucrative for ONGC. Each deep-water well is expected to cost around ₹1,000 crore. While government support is anticipated, specific quantum and timelines have not yet been disclosed, and some global players may also participate.

The scheme provides funds for offshore seismic data acquisition, particularly in erstwhile No-Go zones. A lack of reliable prospectivity data has historically hampered commercial exploitation of oil and gas reserves in these areas. Samudra Manthan also supports drilling in deepwater and ultra-deepwater wells, where the domestic upstream sector has limited experience and technical expertise, and where exploitation remains highly capital-intensive and risky.

The initiative aims to add an incremental annual production of 10-15 million tonnes of oil equivalent (MTOE), which has the potential to reduce India's high import dependence on crude oil and natural gas. Interventions will span the offshore exploration value chain, including large-scale acquisition, processing, and interpretation of high-quality seismic data.

Additionally, the program covers accelerated deepwater and ultra-deepwater exploratory drilling, scientific drilling in frontier basins, development of common offshore production and evacuation infrastructure, and the establishment of an integrated Oil & Gas Manufacturing and Services Zone. The scheme also includes dedicated provisions for digital program management, capacity building, technology adoption, stakeholder engagement, and international outreach to build an integrated ecosystem for offshore exploration and production in the country.

"The structured rollout of the Samudra Manthan scheme highlights a strategic push toward strengthening domestic energy security through deep-water exploration. With state-run majors like ONGC and Oil India leading execution, supported by substantial government funding and a clear year-wise roadmap, this initiative addresses critical infrastructure and capital barriers. For the broader business ecosystem, targeted investments in offshore capabilities and manufacturing zones open up significant collaboration opportunities across the oil and gas value chain." — Dr. Shishir Gupta, Founder & CEO, StartupLanes