Samudra Manthan – National Offshore Exploration Scheme

Why in News?

Recently, the Union Government approved Samudra Manthan – National Offshore Exploration Scheme, with a Phase-I, to accelerate offshore hydrocarbon exploration and production.

What is Samudra Manthan?

• Samudra Manthan – It is a Central Sector Scheme of the Ministry of Petroleum & Natural Gas.
• Funds – Phase-I outlay of Rs.84,084 crore up to FY 2030‑31.
• Objective – To facilitate the development of reserves totalling 600 Million Metric Tonnes of Oil Equivalent (MMTOE) and to strengthen domestic energy security.

What are the four key components of Samudra Manthan?

• Seismic Data Acquisition, Processing, and Interpretation
  • Large-scale 2D and 3D seismic surveys
  • Advanced technology and Artificial Intelligence will speed up processing and interpretation.
  • Older data in the National Data Repository will also be re-processed with modern tools.
• Accelerated Offshore Exploration
  • It planned to drill 60 deepwater and ultra-deepwater wells.
  • Financial support – up to 50 percent of eligible drilling cost, or ₹675 crore per well, whichever is lower.
  • Both public and private Exploration and Production (E&P) operators to increase oil and gas reserves.
• Common Offshore Infrastructure – It scheme provides fund for shared production and evacuation facilities in select basins.
• It lowers project costs and turns idle finds into producing fields.
• Oil and Gas Manufacturing and Services Zone – It will build domestic capabilities in manufacturing, repair, warehousing, engineering, and services.
• It directly advances Make in India across the supply chain by supporting monitoring, digital interventions, evaluation, human resources, awareness, outreach, events, and media.

Mahanadi Basin – India began drilling its first appraisal well (MN‑DWN18‑1‑HD) in the Mahanadi Offshore Basin, using advanced deepwater technology under a four‑well programme to evaluate one of its most prospective hydrocarbon basins.

What are the challenges of Deepsea Exploration?

• Execution delay – Exploration and production is a prolonged process, typically requiring five to ten years from block award to commencement of production.
• High capital – Deepwater wells require significant capital investment, with costs ranging from approximately USD 125 to 150 million per well.
• Risk & uncertainties – The high-risk profile associated with offshore projects further deters potential investment.
• Output decline – Production from existing fields typically declines at a rate of 6 to 7 percent per year further deters potential investment.
• Environmental Concerns – Deepwater drilling introduces significant ecological risks and necessitates the implementation of rigorous environmental safeguards.

What are the advantages of the Deepsea Exploration?

• Larger Reserves – Increase of over 600 MMTOE of hydrocarbon reserves, expanding the resource base from 1.6 billion to 2.2 billion Tonnes of Oil Equivalent (TOE).
• Higher Output – Annual domestic production is targeted to rise from around 62 MMTOE to 80 MMTOE.
• Incremental production of 10–15 MMTOE is expected, with a peak potential of 20 MMTOE.
• Lower Import Bill – Additional output can cut crude imports by nearly Rs.1 lakh crore every year, generating significant foreign exchange savings.
• Investment and Growth – It will promote investments across the value chain and drive strong GDP expansion.
• Employment – Large-scale jobs will be created in exploration, production, and allied activities.
• Indigenous Strength – Domestic manufacturing will deepen under Make in India and Atmanirbhar Bharat, fostering a globally competitive ecosystem for offshore technologies.

What lies ahead?

• India’s energy future depends on ongoing reforms, scientific advancement, and the commitment of geologists, engineers, and offshore professionals.
• Together, these efforts signal the start of a promising energy era.

Reference

PIB | Samudra Manthan – National Offshore Exploration Scheme