The government launched the ‘Samudra Manthan’ Mission with a financial outlay of ₹80,000 crore to promote deepwater and ultra-deepwater oil and gas exploration. The initiative is designed to encourage greater investment in offshore hydrocarbon exploration by reducing the financial risks associated with exploratory drilling. The mission marks a significant step toward strengthening India’s energy security, increasing domestic hydrocarbon production, and reducing dependence on imported crude oil and natural gas.
Incentives to Reduce Exploration Risks
Under the Samudra Manthan initiative, the government will provide substantial financial support to companies undertaking offshore exploration activities. Key incentives include reimbursement of up to 50% of the cost of exploratory wells and partial financial assistance for conducting 3D seismic surveys. By sharing a significant portion of exploration costs, the government aims to lower investment risks and improve the commercial viability of deepwater exploration projects.
Encouraging Domestic and Global Investment
The incentive package is expected to attract both domestic and international energy companies to India’s offshore exploration sector. Deepwater and ultra-deepwater exploration typically require substantial capital investment and involve high geological and operational risks. Consequently, the government’s financial support is expected to boost investor confidence and encourage wider participation in future exploration campaigns.
Linked to Open Acreage Licensing Programme
The Samudra Manthan Mission has been launched alongside the latest round of the Open Acreage Licensing Programme (OALP). Under the current bidding round, the government has offered 18 deepwater and ultra-deepwater offshore blocks for exploration and development. To provide prospective investors with additional time to evaluate the benefits of the new incentive scheme, the government has extended the bid submission deadline to September 17, 2026.
ONGC Begins Offshore Exploration Activities
Demonstrating early momentum under the programme, Oil and Natural Gas Corporation (ONGC) has already commenced exploratory drilling in one of the offshore blocks offered under the latest OALP round. The development signals the beginning of increased exploration activity and reflects growing efforts to unlock India’s offshore hydrocarbon potential.
Strengthening India’s Energy Security
The Samudra Manthan Mission is expected to play a pivotal role in expanding India’s domestic oil and gas production by encouraging exploration in frontier offshore basins. As reported by projectstoday.ai, by reducing financial barriers, accelerating exploration, and attracting new investments, the initiative supports the country’s long-term objectives of improving energy security, enhancing resource self-reliance, and meeting rising energy demand through increased domestic production.
