Government Approves ₹84,084-Crore Samudra Manthan Scheme to Boost Offshore Energy

In August 2026, the Indian government approved the ₹84,084-crore Samudra Manthan mission, a landmark offshore energy exploration program aimed at strengthening India’s energy security, increasing domestic oil and gas production, and reducing the country’s growing dependence on crude oil imports. The first phase of the scheme is set to run until March 31, 2031, focusing on advanced offshore exploration, deepwater drilling, infrastructure development, and domestic manufacturing capabilities. This particular initiative is also set to support the vision of Viksit Bharat by accelerating exploration and production, promoting technological innovation, and enhancing India’s long-term energy resilience.

The mission aims to increase India’s annual domestic oil and gas production from approximately 62 million metric tons of oil equivalent (MMTOE) to 80 MMTOE. In addition to that, the program also seeks to expand India’s hydrocarbon resource base from 1.6 billion tons of oil equivalent (TOE) to 2.2 billion TOE, significantly enhancing the country’s long-term energy reserves. According to government estimates, the resulting increase in domestic production could reduce crude oil imports by nearly ₹1 lakh crore annually, thus providing substantial savings while also simultaneously improving energy security.

Advanced Offshore Seismic Surveys: The government has allocated ₹28,534 crore for acquiring, processing, and interpreting high-quality offshore seismic data using modern exploration technologies. The objective is to identify new hydrocarbon reserves with greater accuracy while reducing exploration risks.

Deepwater Exploration Drilling: To encourage private sector participation, the government will support up to 50% of eligible drilling costs, subject to a maximum assistance of ₹675 crore per well. This financial support is expected to accelerate exploration activities in deepwater and ultra-deepwater basins.

Oil and Gas Manufacturing and Services Zones: The government will invest ₹2,000 crore to establish dedicated manufacturing and services hubs for the oil and gas sector. These zones aim to promote indigenous manufacturing, localize critical equipment production, strengthen supply chains, and reduce dependence on imported technologies.

Impact on the Chemical Market

The Samudra Manthan Mission represents one of India’s largest investments in offshore hydrocarbon exploration. By combining advanced exploration technologies, deepwater drilling, modern infrastructure, and domestic manufacturing, the initiative aims to unlock new oil and gas reserves while reducing import dependence. India also continues to experience rising energy demand. The program is expected to play a crucial role in enhancing domestic production, supporting industrial growth, and advancing the country’s long-term energy security objectives.

Beyond exploration and drilling, the Samudra Manthan Mission has also introduced a comprehensive approach to offshore energy development. The program includes large-scale acquisition and interpretation of seismic data, accelerated deepwater and ultra-deepwater drilling, scientific drilling in frontier sedimentary basins, development of offshore production and evacuation infrastructure, and creation of integrated oil and gas manufacturing and service hubs. Overall, the scheme incorporates digital program management, advanced technology adoption, capacity building, stakeholder engagement, and international collaboration in order to strengthen India’s offshore exploration capabilities.

Impact on the Offshore Drilling Market

The global offshore drilling market size was estimated at USD 42.86 billion in 2025 and is predicted to increase from USD 46.39 billion in 2026 to approximately USD 93.13 billion by 2035, expanding at a CAGR of 8.07% from 2025 to 2034. The rising demand for natural gas and oil worldwide drives the offshore drilling market.

According to Precedence Research, the increasing need for energy worldwide makes offshore gas and oil extraction appealing. Market expansion is fueled by rising exploration expenditures from nations possessing gas and oil deposits. Companies all over the world are moving toward offshore exploration because stricter rules prohibit onshore drilling operations. Technological developments have also made it possible to tap enormous resources into deep and ultra-deep waters, creating numerous opportunities. Another such primary growth driver is the increasing investments governments and energy firms make in offshore exploration and development projects.

Governments and international organizations all over the world are imposing stricter environmental controls on offshore drilling operations. Technologies that reduce ecological effects can help assist businesses in adhering to these rules, avoiding fines, and maintaining business continuity. Businesses that use green technologies can significantly improve their brand image and reputation. Being regarded as an ecologically conscious business can draw partners, investors, and clients who value sustainability. Real-time monitoring systems can anticipate equipment breakdowns using IoT and AI, which lowers the risk of environmental damage and operational downtime.

Impact on the Oil and Gas Exploration and Production Market

The global oil and gas exploration and production market size accounted for USD 6.14 billion in 2025 and is predicted to increase from USD 6.88 billion in 2026 to approximately USD 19.14 billion by 2035, expanding at a CAGR of 12.04% from 2026 to 2035.

According to Precedence Research, the rising widespread use of advanced techniques like 3D and 4D seismic imaging is expected to promote the growth of the oil and gas exploration and production market during the forecast period. 3D offers detailed subsurface mapping, while 4D enables monitoring of changes in reservoirs over time. The rapid urbanization in developing nations, along with growing energy consumption in residential and commercial sectors, necessitates the exploration of new and accessible oil and gas reserves, bolstering the growth of the market.

The increasing transition towards cleaner energy sources is accelerating the exploration and production of natural gas, which is expected to create significant growth opportunities for the market during the forecast period, thus leading to robust growth and development in the global market landscape.