India has unveiled new rules for offshore oil and gas exploration, under its 'Samudra Manthan' scheme, committing to share drilling risks with private energy companies. This ₹84,084 crore initiative aims to boost domestic crude production and enhance .
₹84,084 crore
Scheme Investment
⏳ Time Machine
How today’s news fits into the bigger picture
1997-2016
New Exploration Licensing Policy (NELP) Period
India operated under the NELP, where oil and gas blocks were awarded through international competitive bidding. While NELP attracted some investment, deepwater and ultra-deepwater exploration remained challenging due to high risks and costs borne solely by explorers, resulting in limited success.
March 2016
Hydrocarbon Exploration and Licensing Policy (HELP) Introduced
HELP was launched, replacing NELP, offering a uniform licensing system for all hydrocarbons and a revenue-sharing model. This aimed to simplify regulations and attract more investment, but deepwater drilling risk remained a significant barrier for private players.
June 2024
India's Crude Oil Imports Hit Record High
India's reliance on crude oil imports reached a record high, with over 85% of its demand met through foreign sources. This underscored the urgent need to boost domestic production and reduce vulnerability to geopolitical supply shocks and price volatility.
August 2026
Government Reports ₹84,084 Crore Investment Pipeline
Data revealed a significant private investment pipeline in various sectors, including energy. The government recognized the need for targeted policies to channel these investments into strategic areas like deepwater oil and gas exploration.
October 2026
Samudra Manthan Scheme Launched
The government officially launched the 'Samudra Manthan' scheme, committing to share drilling risks with energy companies for offshore oil and gas exploration, backed by an ₹84,084 crore investment, to incentivize exploration in high-risk deepwater areas.
Today
India launched 'Samudra Manthan' scheme, committing to share offshore oil exploration drilling risks with private companies.
What happens next?
Energy companies are expected to increase bids for high-risk deepwater exploration blocks, leading to more intensive surveys and drilling activities.
The Indian government has launched a significant policy shift under its 'Samudra Manthan' scheme, introducing new rules for offshore oil and gas exploration that will see it share drilling risks with private energy companies. This ₹84,084 crore (approximately $10.1 billion) initiative is designed to incentivize investments in high-risk, deepwater exploration, a sector critical for boosting domestic crude oil and natural gas production. By taking on a portion of the exploration risk, the government aims to attract more private capital and advanced technology into an area that has historically seen limited participation due to its high costs and low success rates. This strategic move is expected to enhance India's energy security and reduce its reliance on volatile global oil markets, creating a more attractive environment for both public and private sector players.
💭 If you're wondering…
It's a Sanskrit term meaning 'churning of the ocean', referring to a mythological event where gods and demons churned the cosmic ocean to extract valuable treasures. In this context, it symbolizes the effort to extract valuable resources from India's offshore areas.
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