India's Offshore Exploration Mission 'Samudra Manthan' Gets Cabinet Nod, Aims to Reduce Crude Oil Imports

New Delhi, Aug 1: The Petroleum Ministry on Saturday said the 'Samudra Manthan' scheme will create a robust offshore exploration ecosystem through improved data access, risk-sharing, common infrastructure and domestic manufacturing capabilities, helping India strengthen deepwater exploration and production, enhance energy security, and reduce its long-term dependence on imports.

India is the world's third-largest consumer of crude oil, with an annual import bill of nearly $144 billion (approximately Rs 13 lakh crore).

As recent geopolitical developments have demonstrated, secure and uninterrupted access to energy resources is of strategic importance for a rapidly growing economy.

With India's energy demand expected to rise steadily in the coming decades, enhancing domestic oil and gas production is essential for reducing import dependence, strengthening energy resilience, and securing the nation's long-term economic growth, the ministry said in a statement.

The Union Cabinet on Friday approved ‘Samudra Manthan’ — the National Offshore Exploration Scheme carrying an approved outlay of Rs 84,084 crore for implementation through FY 2030–31.

It is India’s most ambitious offshore exploration mission to date. This approval marks the culmination of a series of transformative reforms undertaken under the leadership of Prime Minister Narendra Modi to strengthen India's hydrocarbon exploration and production sector.

‘Samudra Manthan' builds upon these reforms by translating policy into action and opening a new chapter in India's journey towards energy security and Atmanirbhar Bharat.

Since 2014, the government has undertaken a series of structural reforms over the past few years to create an enabling ecosystem for hydrocarbon exploration and production.

More than 99 per cent of the earlier "No-Go" areas have been removed, making over one million square kilometres of India's Exclusive Economic Zone available for exploration for the first time.

India transitioned from Production Sharing Contracts to Revenue Sharing Contracts, simplifying the fiscal framework and improving transparency while reducing administrative intervention.

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The Oilfields (Regulation and Development) Amendment Act, 2025 modernised the legal framework governing the sector by providing contractual stability, recognising integrated petroleum operations, strengthening dispute resolution mechanisms, and establishing a contemporary regulatory architecture.

The Petroleum and Natural Gas Rules, 2025 operationalised these reforms by promoting ease of doing business, improving regulatory efficiency, and streamlining the administration of petroleum leases.

The government has also standardised the composition and mandate of the Empowered Committee of Secretaries across all contract regimes, ensuring consistency and a level playing field for all operators, irrespective of when their contracts were signed.

Moreover, the performance parameters of ONGC and Oil India have been reoriented to place greater emphasis on exploration activities, reinforcing the Government's commitment to expanding India's domestic hydrocarbon resource base.

(IANS)