Samudra Manthan National Offshore Exploration Scheme (UPSC/RAS/PSI) Current Affairs {National}

Nodal Ministry- Ministry of Petroleum and Natural Gas (MoPNG)
as a comprehensive, mission-mode scheme designed to accelerate deepwater and ultra-deepwater hydrocarbon exploration across India's Exclusive Economic Zone (EEZ). Financial Outlay- Sanctioned with a Phase-I outlay of ₹84,084 crore operational through FY 2026–27 to FY 2030–31.
Core Economic Objective- Addresses India's crude oil import dependency, which currently costs approximately USD 144 billion (~₹13 lakh crore) annually for the world's third-largest crude oil consumer.
De-Risking Strategy- Transitions from passive policy reform to active state risk-sharing, co-funding high-cost frontier drilling to crowd in private and public E&P (Exploration and Production) capital.
Macro Reserve Targets- Aims to add over 600 MMTOE (Million Metric Tonnes of Oil Equivalent) of hydrocarbon reserves, expanding the national resource base from 1.6 billion to 2.2 billion TOE.

Offshore Resource Scale- India's eastern and western offshore basins extend to water depths of up to 3,000 metres, holding an estimated potential of over 5,600 MMTOE.
High Capital Risk- Moving an offshore block from initial award to commercial production takes 5–10 years, with a single deepwater exploratory well costing between USD 125 million to USD 150 million.
Natural Field Decline- Existing mature fields experience a natural annual production decline of 6% to 7%, making continuous new discoveries essential merely to sustain baseline domestic output.
Prospective Basin Finds- Recent geological discoveries in the Cauvery, Mahanadi, Kutch, and Andaman offshore basins have reinforced India's deepwater resource potential.
Mahanadi Deepwater Campaign- Initiated a landmark drilling campaign on July 25, 2026, spudding the first appraisal well (MN-DWN18-1-HD) in the Mahanadi Offshore Basin using advanced deepwater rigs.

A. Component-Wise Budgetary Breakdown-

1. Seismic Data Acquisition, Processing & AI Interpretation (₹28,534 Crore)-

2D Seismic Data- ₹12,000 crore allocated for basin-wide regional coverage.
3D Seismic Data- ₹12,534 crore for high-resolution target mapping.
NDR Data Re-processing- ₹4,000 crore to re-process legacy data in the National Data Repository using Artificial Intelligence and modern imaging tools.

2. Accelerated Offshore Drilling Subsidies (₹43,200 Crore)-

Co-funds the drilling of 60 deepwater and ultra-deepwater exploratory wells.
Capital grant covers up to 50% of eligible drilling costs, capped at ₹675 crore per well.
Open to both public sector units (ONGC, OIL) and private E&P operators.

3. Common Offshore Infrastructure (₹10,000 Crore)-

Funds shared production platforms, pipelines, and evacuation facilities in high-potential basins (e.g., Mahanadi and Kutch).
Monetizes stranded/idle discoveries by removing the high standalone infrastructure cost burden.

4. Oil and Gas Manufacturing and Services Zone (₹2,000 Crore)-

Establishes a dedicated industrial zone for marine engineering, equipment repair, platform fabrication, and subsea services.
Advances Make in India and Aatmanirbhar Bharat across the subsea equipment supply chain.

B. Monitoring, Evaluation & Media Support (₹350 Crore)-

Dedicated outlay for digital program management, real-time monitoring, capacity building, and international investor outreach

Domestic Production Growth- Targets raising annual domestic hydrocarbon output from ~62 MMTOE to 80 MMTOE, with peak incremental production reaching 20 MMTOE annually.
Forex Import Savings- Additional domestic production is projected to cut crude import bills by nearly ₹1 lakh crore annually, conserving critical foreign exchange reserves.
Investment Multiplier- Expected to catalyze multi-billion dollar private and foreign direct investments across the upstream and midstream value chains.
Employment & Industrial Skilling- Generates extensive direct and indirect technical employment across marine geology, subsea engineering, fabrication, and offshore operations.
Supply Chain Resilience- Reduces foreign dependence for subsea equipment repairs, platform servicing, and specialized marine drilling support.

Opening Up "No-Go" Acreage- Removed over 99% of previous "No-Go" operational restrictions, opening over 1 million sq. km of the Exclusive Economic Zone (EEZ) for exploration.
HELP & OALP Framework (2016)- Replaced nomination models with the Hydrocarbon Exploration and Licensing Policy (HELP) and Open Acreage Licensing Programme (OALP), offering uniform licensing and reduced royalty rates.
Revenue Sharing Contracts (RSC)- Transitioned from complex Production Sharing Contracts (PSC) to transparent Revenue Sharing Contracts (RSC), eliminating government cost audits and administrative friction.
Oilfields (Regulation & Development) Amendment Act, 2025- Modernized legal stability, recognized integrated petroleum operations, and introduced streamlined dispute resolution mechanisms.
Petroleum & Natural Gas Rules, 2025- Streamlined lease administration and standardized the mandate of the Empowered Committee of Secretaries across all historical contract regimes.

National Geoscientific Initiatives- Built one of the world's most comprehensive geoscientific databases via Mission Anveshan, National Seismic Programme, Extended Continental Shelf Survey, and National Data Repository (NDR).
Post-2014 Acreage Allocation- Over 81% of active exploration acreage was awarded post-2014 under OALP, covering 172 blocks across ~3.8 lakh sq. km with committed investments exceeding USD 4.3 billion.
FY 2025–26 Drilling Achievements- Drilled 674 exploratory/development wells, resulting in 5 new discoveries and the successful monetization of 7 existing discoveries.
Digital Management Architecture- Implemented transparent, digital program management systems for tracking lease approvals, seismic survey mapping, and subsidy disbursals.
Capacity Building & Global Outreach- Enforces continuous international engagement to attract global oil majors and deepwater technology providers into India's offshore basins.