Samudra Manthan: India’s ₹84,044 Crore Plan to Explore Oil, Gas & Offshore Wind Energy

What is the Samudra Manthan Scheme?

Samudra Manthan is the name associated with India’s National Offshore Exploration Scheme, under the Ministry of Petroleum and Natural Gas. Its central objective is to make offshore oil and gas exploration more attractive by reducing some of the financial risks faced by exploration companies.

The programme focuses particularly on areas where exploration is technically difficult and expensive. Deepwater and ultra-deepwater drilling requires specialised drilling vessels, sophisticated seismic surveys, advanced geological analysis and significant capital investment.

The government’s support is therefore intended to encourage companies to investigate offshore areas that may otherwise remain underexplored because of the high cost and uncertainty involved.

Why Is India Looking Beneath the Sea?

India is one of the world’s major energy-consuming economies, but a substantial portion of its crude oil requirements is met through imports. This makes the country vulnerable to international oil prices, geopolitical tensions, disruptions in shipping routes and changes in global energy supply.

Recent disruptions and instability in West Asia have again highlighted the importance of domestic energy production. Analysts and policymakers have increasingly focused on developing India’s own resources to improve long-term energy resilience.

Samudra Manthan is intended to address this challenge by increasing exploration in India’s offshore sedimentary basins.

The basic idea is straightforward:

• Explore more offshore areas.
• Collect better geological and seismic data.
• Drill exploratory wells.
• Identify commercially viable oil and gas resources.
• Encourage companies to develop successful discoveries.
• Increase domestic energy production over time.

₹84,084 Crore Investment: What Does It Mean?

The size of the programme is one of its most significant features. The approved outlay is ₹84,084 crore, making it a major government intervention in India’s upstream oil and gas sector.

The money is intended to support exploration-related activities and reduce the risks associated with offshore drilling. Reports indicate that the programme is expected to operate over a multi-year period and support activities such as seismic surveys, exploratory drilling and common offshore infrastructure.

Deepwater exploration is considerably more expensive than many conventional onshore projects. A company can spend enormous amounts drilling a single exploratory well without knowing whether it will discover commercially recoverable oil or gas.

Government support can therefore change the economics of exploration.

Government Support for Exploratory Wells

One of the important features reported in connection with the programme is financial assistance toward exploratory drilling costs.

The proposed framework is designed to share part of the financial risk associated with drilling offshore exploration wells. Earlier reporting indicated that the government was considering support of up to 50% of the cost of drilling exploratory wells, subject to applicable limits and scheme conditions.

This is particularly important because deepwater exploration can involve very high upfront costs. Without adequate geological information, companies face the possibility of spending hundreds of crores on a well that may not result in a commercial discovery.

By sharing some of this risk, the government hopes to make difficult offshore areas more attractive to exploration companies.

Oil and Natural Gas: The Main Focus

Although offshore renewable energy is becoming increasingly important in India, Samudra Manthan is primarily an oil and natural gas exploration initiative, not an offshore wind-energy programme.

The main target is hydrocarbons located beneath India’s seabed.

Oil can be processed into fuels used by automobiles, aviation, industry and other sectors, while natural gas is used for electricity generation, fertiliser production, industrial applications and household energy.

Finding additional domestic reserves could therefore have a wide economic impact.

However, exploration does not automatically mean that commercially usable oil or gas will be found. Geological conditions vary considerably between offshore basins, and even a discovery must undergo further evaluation to determine whether it can be produced economically.

Deepwater and Ultra-Deepwater Exploration

The biggest challenge — and opportunity — lies beneath deeper sections of the sea.

Deepwater and ultra-deepwater exploration requires highly specialised technology. Drilling equipment must operate in challenging marine environments while wells may extend thousands of metres below the seabed.

Exploration generally begins with geological and seismic studies. Seismic technology allows scientists and companies to study underground rock formations and identify structures that could potentially contain hydrocarbons.

If a promising prospect is identified, an exploratory well may be drilled.

Only after drilling, testing and detailed evaluation can companies determine whether a discovery has commercial potential.

Role of Seismic Data

Data is one of the most important elements of modern oil and gas exploration.

India has been working to expand the availability and quality of geological and seismic information from its sedimentary basins. Under the wider Samudra Manthan exploration agenda, the government has engaged industry participants and global exploration and technology companies to strengthen India’s data-driven exploration ecosystem.

In April 2026, the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons organised a conference focused on data-driven exploration. The event brought together government bodies, national oil companies, international exploration companies and seismic technology providers.

Better data can reduce uncertainty and help companies decide where exploration drilling has the greatest chance of success.

Could Samudra Manthan Reduce Import Dependence?

Reducing dependence on imported crude oil and gas is one of the major strategic reasons behind the programme.

India’s energy demand is expected to remain significant as the economy expands, industries grow and transportation needs increase. Domestic production can provide an additional source of supply and potentially reduce exposure to international disruptions.

However, it would be unrealistic to expect the programme to immediately eliminate India’s import requirements.

Offshore exploration is a long-term process. Discoveries need to be assessed, developed and connected to production infrastructure before they can contribute significant volumes of oil or gas.

Therefore, the impact of Samudra Manthan is likely to be measured over years rather than months.

Attracting Global Energy Companies

Another important objective is to encourage greater participation from experienced international energy companies.

Deepwater exploration requires expertise in areas such as subsea engineering, drilling, seismic interpretation, reservoir evaluation and offshore production. International companies have extensive experience in some of the world’s most challenging offshore environments.

India’s policy is therefore aimed at making its offshore exploration opportunities more attractive to both domestic and global players. Reports have highlighted the government’s intention to bring additional investment and technology into the sector.

Greater participation could also create opportunities for Indian companies involved in engineering, shipping, drilling services, equipment manufacturing and offshore infrastructure.

A Wider Economic Impact

The programme could have effects beyond oil and gas production.

Large-scale offshore exploration can create demand for:

• Offshore drilling services
• Engineering and construction
• Seismic surveying
• Marine logistics
• Ship and vessel services
• Oilfield equipment
• Subsea technology
• Data analysis and geological services
• Skilled technical professionals

If successful discoveries move into production, additional infrastructure and employment opportunities could emerge around the wider energy ecosystem.

For India’s manufacturing and engineering sectors, greater offshore activity could also create opportunities to supply specialised equipment and services.

Environmental Challenges

Offshore exploration must also be undertaken with strong environmental safeguards.

Marine ecosystems are sensitive to industrial activity, and offshore drilling involves potential risks related to spills, marine pollution, waste management and disturbance to marine life.

Seismic surveys and drilling operations must therefore follow environmental and regulatory requirements. Any future commercial production would require additional assessments and safeguards.

The goal of energy security must be balanced with responsible management of India’s marine environment.

What Could the Future Look Like?

The success of Samudra Manthan will ultimately depend on what exploration activities discover beneath India’s offshore basins.

If significant commercially viable oil and gas resources are identified, the programme could strengthen domestic production and improve India’s long-term energy security.

It could also encourage further investment in offshore technology and infrastructure.

At the same time, exploration is inherently uncertain. Large investments do not guarantee discoveries, and discoveries themselves do not always become economically viable production projects.

The programme should therefore be viewed as a long-term exploration and energy-security strategy, rather than a guaranteed source of immediate additional oil and gas.

Conclusion

Samudra Manthan represents a major new chapter in India’s search for domestic energy resources. With an approved outlay of ₹84,084 crore, the National Offshore Exploration Scheme seeks to expand oil and natural gas exploration in deepwater and ultra-deepwater areas while reducing some of the financial risks faced by exploration companies.

The concept behind the name is particularly fitting: just as the traditional Samudra Manthan represents the churning of the ocean in search of something valuable, this modern initiative aims to explore beneath India’s seas for resources that could contribute to the country’s energy future.

From seismic surveys and exploratory drilling to advanced offshore technology and international investment, the programme brings together multiple parts of the energy sector. Its ultimate success will depend on the resources discovered, their commercial viability and India’s ability to develop them responsibly.

For a country seeking greater energy security and self-reliance, the deep sea could become an increasingly important part of the energy story — and Samudra Manthan is India’s ambitious attempt to find out what lies beneath.

About the Author

Hemangi writes business-focused articles that deliver insights and practical solutions.