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Project Samudra Manthan: India Unveils ₹84,084 Crore Offshore Push to Cut Oil Imports

Source CNBC TV18

NEW DELHI — In a major step toward long-term energy independence, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the ‘Samudra Manthan’ National Offshore Exploration Scheme with a massive budget of ₹84,084 crore.

The central sector initiative, managed by the Ministry of Petroleum and Natural Gas through FY2030–31, aims to unlock the country’s vast, untapped seabed energy reserves and cushion the economy against global supply chain volatility.

Securing Energy in an Uncertain World

India currently imports nearly 90% of its crude oil needs. Heightened geopolitical friction along key maritime choke points—such as the Strait of Hormuz and the Red Sea—has made domestic energy security an urgent national priority.

The government projects that Samudra Manthan will help discover and add more than 600 million metric tonnes of oil equivalent (MMTOE) to India’s hydrocarbon reserves. Once operational, the initiative is expected to yield an incremental annual production of 10–15 MMTOE, peaking at 20 MMTOE, which will save substantial foreign exchange annually by substituting crude imports.

Two-Pillar Strategy

The scheme spans the complete offshore exploration value chain, split into two primary operational pillars:

Seismic Data Acquisition & Interpretation (~₹28,000 Crore)

Focuses on acquiring high-resolution 2D and 3D seismic mapping across unexplored maritime boundaries to pinpoint potential deepwater and ultra-deepwater oil deposits.

Offshore Acceleration & Infrastructure Support (~₹43,000 Crore)

Supports exploratory drilling, scientific surveys in frontier sedimentary basins, shared offshore evacuation infrastructure, and the creation of a dedicated Oil & Gas Manufacturing and Services Zone.

Boosting Local Industry & Manufacturing

Beyond crude production, Samudra Manthan aligns directly with the Make in India and Atmanirbhar Bharat vision. By establishing dedicated industrial zones and shared infrastructure, the government aims to catalyze local equipment manufacturing, private sector technology investments, and high-skilled engineering jobs across the offshore energy ecosystem.

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