India’s Offshore Exploration Reset: How the Samudra Manthan Scheme Could Unlock New Hydrocarbon Resources

The government's Samudra Manthan – National Offshore Exploration Scheme represents a major intervention in this landscape. Approved with an outlay of ₹84,084 crore, the programme is designed to accelerate offshore exploration through modern seismic surveys, financial support for deepwater exploratory drilling, shared offshore infrastructure and investment in domestic manufacturing and services. Its objective extends beyond acquiring new exploration acreage. It seeks to address several of the technical, financial and infrastructure constraints that influence whether offshore resources can be discovered and commercially developed.

For India's oil and gas industry, the scheme creates a new framework for exploration investment, technology deployment and collaboration between public-sector companies, private operators, service providers and equipment manufacturers. However, its long-term impact will depend on the quality of exploration results, commercial viability of discoveries and the industry's ability to translate geological potential into sustainable production.

Why India Is Refocusing on Offshore Hydrocarbon Exploration

India's hydrocarbon exploration strategy is increasingly focused on areas that require more advanced geological interpretation and specialised drilling capabilities. Although the country has established production from offshore regions such as Mumbai Offshore and the Krishna-Godavari Basin, substantial areas of its sedimentary basins remain underexplored or require further evaluation.

The National Data Repository identifies 26 sedimentary basins across India, covering an estimated sedimentary area of approximately 3.36 million square kilometres. A significant portion of this area lies offshore, including deepwater regions beyond the 400-metre isobath.

Several offshore basins offer opportunities for further exploration, including Krishna-Godavari, Cauvery, Mahanadi and the Andaman region. These areas have different geological characteristics and exploration maturity levels, making basin-specific evaluation essential.

The strategic interest in offshore exploration is also connected to India's dependence on imported crude oil and natural gas. Domestic discoveries could contribute to supply diversification and reduce exposure to international market disruptions. However, offshore exploration is a long-cycle activity. New discoveries must undergo appraisal, development planning, infrastructure construction and regulatory approvals before they can contribute meaningfully to domestic production.

Samudra Manthan: A New Framework for Offshore Exploration

Approved by the Union Cabinet on 31 July 2026, Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas with an approved outlay of ₹84,084 crore for implementation through FY 2030–31.

The programme introduces a coordinated approach to offshore exploration by combining geological data acquisition, financial risk-sharing, drilling support and common infrastructure development.

Its major components include an allocation of ₹28,534 crore for offshore data acquisition, processing and interpretation; ₹43,200 crore for offshore exploration acceleration through exploratory drilling; ₹10,000 crore for infrastructure-led offshore production; and ₹2,000 crore for oil and gas manufacturing and services zones. Additional provisions support digital programme management, monitoring, capacity building and stakeholder engagement.

One of the most significant features is the provision of financial assistance for deepwater exploration wells. The government intends to support up to 50% of eligible drilling costs, subject to prescribed limits and scheme conditions. This is intended to reduce the financial exposure associated with high-risk offshore exploration and encourage operators to undertake drilling in areas where geological uncertainty has historically discouraged investment.

Reducing the Financial Risk of Deepwater Drilling

Deepwater exploration requires substantial capital investment before commercial hydrocarbon resources can be confirmed. Operators must fund seismic surveys, geological interpretation, drilling vessels, subsea equipment, well construction, testing and specialised offshore services.

A single exploratory well can involve significant expenditure, particularly in ultra-deepwater environments where water depth, pressure, temperature and seabed conditions increase technical complexity.

The Samudra Manthan scheme addresses this challenge through a cost-sharing mechanism. Under the operational framework reported in October 2026, the programme provides support for 56 exploratory wells and four stratigraphic wells.

For the 56 exploratory wells, government assistance can cover up to 50% of eligible drilling costs, subject to a maximum of ₹675 crore per well. The four stratigraphic wells, which are primarily intended to improve geological understanding rather than establish commercial production, can receive support covering up to 100% of eligible costs, subject to a ceiling of ₹1,350 crore per well and the applicable eligibility conditions.

This distinction is important. Exploratory wells investigate prospects for potential hydrocarbon discoveries, whereas stratigraphic wells provide information about subsurface formations, geological structures and basin characteristics.

The financial support is designed to improve the economics of exploration without removing the risks associated with unsuccessful drilling. Operators must still undertake geological evaluation, meet contractual commitments and manage costs beyond the permitted support limits.

Deepwater and Ultra-Deepwater Basins: Where the Exploration Opportunity Lies

India's offshore exploration potential is distributed across several sedimentary basins, each presenting different geological and operational conditions.

The Krishna-Godavari Basin has an established exploration and production history, particularly in deepwater gas development. Further exploration may build on existing geological knowledge, although individual prospects still require detailed assessment of reservoir quality, hydrocarbon distribution and development economics.

The Cauvery Basin offers additional offshore exploration opportunities along India's southeastern coastline. Its geological complexity and varied exploration maturity require careful integration of seismic information, well data and basin modelling.

The Mahanadi Basin is attracting attention as an area where improved geological information and shared offshore infrastructure could support future exploration and potential development. Infrastructure-led planning is particularly relevant where discoveries may be distributed across multiple blocks.

The Andaman region represents a frontier exploration opportunity. Its geological setting requires further investigation, advanced seismic imaging and specialised drilling programmes before commercial potential can be established.

These basins should not be viewed as having identical resource prospects. Their geological maturity, exploration history, water depth, reservoir characteristics and infrastructure requirements differ considerably.

Technology and Engineering Capabilities Will Shape Exploration Outcomes

The expansion of offshore exploration will increase demand for specialised technologies and engineering capabilities across the upstream value chain.

Deepwater and ultra-deepwater operations require advanced drilling rigs, subsea production systems, remotely operated vehicles, high-pressure equipment, well-control technologies and specialised offshore vessels.

Seismic acquisition and interpretation also require advanced marine survey equipment, high-performance computing, geological modelling platforms and integrated exploration databases.

Digital technologies are becoming increasingly relevant to these activities. AI-assisted seismic interpretation can help process large exploration datasets, while advanced simulation tools support well planning, drilling optimisation and geological risk assessment.

Real-time drilling monitoring can improve visibility into well conditions, equipment performance and operational parameters. Remote inspection technologies and subsea robotics can also support activities in environments where direct human intervention is difficult or costly.

However, technology deployment must be supported by experienced geoscientists, drilling engineers, subsea specialists and offshore operations teams. Digital tools can improve analysis and decision-making, but they cannot eliminate geological uncertainty or replace the engineering controls required for safe drilling.

Building a Domestic Offshore Manufacturing and Services Ecosystem

Large-scale offshore exploration requires a wide network of equipment manufacturers, engineering companies, drilling contractors, technology providers and specialised service organisations.

Historically, complex offshore projects have depended on international suppliers for several categories of advanced equipment and technical services. Expanding domestic manufacturing capabilities could help India develop a more resilient supply chain while creating opportunities for industrial investment.

Samudra Manthan includes ₹2,000 crore for oil and gas manufacturing and services zones. The proposed zones are intended to support domestic production, localisation of critical equipment, testing facilities and the development of specialised offshore services.

Potential opportunities extend across subsea components, offshore structures, drilling equipment, marine engineering, well-control systems, specialised materials, instrumentation and digital technologies.

The development of these capabilities will require collaboration between exploration operators, equipment manufacturers, engineering contractors, research institutions and technology providers.

Explore the Future of India's Oil & Natural Gas Industry

The Future of Oil & Natural Gas Conference 2026, organised by PTN Events, brings together oil and gas companies, exploration and production operators, policymakers, infrastructure developers, technology providers, EPC contractors and industry professionals to examine the developments shaping India's oil and natural gas sector.

With discussions covering upstream exploration, offshore development, production technologies, infrastructure investment, digital operations and industrial transformation, the conference provides a platform for industry stakeholders to exchange insights and examine emerging opportunities across the value chain.

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