The Union Cabinet on Friday approved the petroleum and natural gas ministry's ambitious Samudra Manthan scheme, officially the National Offshore Exploration Scheme, with an outlay of Rs 84,084 crore aimed at accelerating deepwater oil and gas exploration and attracting global energy companies to India's offshore basins.
The scheme is designed to reduce the financial risk associated with deepwater and ultra-deepwater exploration, which typically involves high capital costs and geological uncertainty.
Under the earlier proposed framework, the government had indicated it could reimburse up to 50 per cent of the cost of exploratory wells, along with partial funding support for 3D seismic surveys, though final scheme parameters are expected to be detailed by the ministry.
The move builds on groundwork already underway, with ONGC having spudded its first deepwater exploratory well under the Samudra Manthan umbrella in the Mahanadi basin earlier this month. The initiative is part of India's broader push to reduce its dependence on imported crude oil, which currently accounts for around 85 per cent of the country's consumption.
Deepwater exploration remains an expensive proposition, with drilling a single exploratory well typically costing Rs 1,000-1,200 crore, depending on geological complexity, while ultra-deepwater wells can cost several hundred crore more.
Also read: Govt plans Rs 80,000 crore package to attract deepwater oil explorers
The government is currently auctioning 18 deepwater and ultra-deepwater blocks under the Open Acreage Licensing Programme (OALP). The bid deadline has been extended to September 17, by which time the incentive package is expected to be operational if approved.
The approval comes on a day the Cabinet cleared multiple schemes, including the continuation of PM-KISAN, the Pradhan Mantri Surya Sarovar Yojana for floating solar, and a revamped Khelo India scheme with enhanced assistance to National Sports Federations.
