According to The Hindu Business Line, India’s Oil Ministry is preparing a year-wise execution roadmap for drilling, seismic surveys and rig deployment under the $8.8 billion Samudra Manthan, or the National Offshore Exploration Scheme, to lift crude oil and natural gas output from deep and ultra-deep waters. The ministry eyes higher production with the funding boost, the publication reported.
Government review drives the roadmap
The Hindu Business Line reported that Oil Minister Hardeep Singh Puri met top ministry officials and PSU executives earlier this week to review action taken on decisions from two recent brainstorming sessions at Gurugram (Haryana) and Duliajan (Assam). Puri said the progress in the implementation of the Samudra Manthan Scheme was discussed. The ministry has decided to pursue a year-wise roadmap, now being finalised, to drive accelerated drilling, seismic surveys and rig deployment across the KG, Mahanadi, Andaman and Cauvery basins.
Funding, costs and the $75 oil price assumption
According to The Hindu Business Line, Samudra Manthan is backed by ₹84,000 crore in Phase-1 funding valid till FY31. Motilal Oswal Financial Services said the opportunity seems very lucrative for ONGC, adding that each deep-water well will cost around ₹1,000 crore. The brokerage noted that ONGC expects oil prices to settle at $75 per barrel in the long run, which would make deep-water exploration viable compared with $60-65 prices.
ONGC expects oil prices to settle at $75 per barrel in the long run. That will help ONGC to undertake exploration activities (including deep water exploration) which were not viable financially at $60-65.
Motilal Oswal added that support will come from the government, but the quantum and timelines are still not disclosed, and some global players might come into the scheme.
Drillship JV and infrastructure build-out
State-run exploration and production majors ONGC and Oil India (OIL) will be the driving force behind the scheme, Puri said. A dedicated ONGC-led joint venture for drillship capacity addresses a key infrastructure bottleneck through shared investment and long-term chartering, he noted. The scheme provides funds for offshore seismic data acquisition, especially in erstwhile No-Go zones, a key issue hampering commercial exploitation of oil and gas reserves in these areas due to lack of good prospectivity data. It also supports drilling of deepwater and ultra-deepwater wells where the domestic upstream sector has limited experience and technical expertise and where exploitation remains highly capital-intensive and risky.
Output target and programme scope
Samudra Manthan aims to add incremental annual production of 10-15 million tonnes of oil equivalent (MTOE), which can potentially reduce India’s high import dependence on crude oil and natural gas, according to The Hindu Business Line. The scheme will deploy interventions across the offshore exploration value chain, including large-scale acquisition, processing and interpretation of high-quality seismic data; accelerated deepwater and ultra-deepwater exploratory drilling; scientific drilling in frontier basins; development of common offshore production and evacuation infrastructure; and establishment of an integrated Oil & Gas Manufacturing and Services Zone. Dedicated provisions cover digital programme management, capacity building, technology adoption, stakeholder engagement and international outreach.
Key facts at a glance
| Parameter | Detail |
|---|---|
| Scheme | Samudra Manthan (National Offshore Exploration Scheme) |
| Outlay | $8.8 billion; ₹84,000 crore Phase-1 (valid till FY31) |
| Basins targeted | KG, Mahanadi, Andaman, Cauvery |
| Annual output goal | 10-15 MTOE incremental |
| Drillship capacity | ONGC-led JV with shared investment and long-term chartering |
| Well cost | Around ₹1,000 crore per deep-water well |
| Price assumption | Oil at $75 per barrel in the long run (ONGC, via Motilal Oswal) |
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