Cabinet Approves ₹84,084 Crore National Offshore Exploration...

By GT24x7 Reporter · 12 August 2026 · GlobalToday24x7

In a major initiative aimed at strengthening India’s energy security and reducing dependency on foreign energy imports, the Ministry of Information and Broadcasting announced that the Central Government has approved the first phase of the National Offshore Exploration Scheme. With a dedicated financial outlay of ₹84,084 crore allocated through the fiscal year 2030-31, the scheme is structured to accelerate exploration, drilling, infrastructure development, and production across the nation's vast offshore maritime basins.

The strategic program directly aligns with the national vision of energy independence ('Aatmanirbhar Bharat' in energy), focusing on tapping underexplored deepwater and ultra-deepwater oceanic zones. By building robust domestic production capacities, the initiative seeks to insulate the domestic economy from international crude oil price volatility while creating thousands of skilled technical jobs in maritime and energy sectors.

Financial Allocation for Seismic Surveys and Deepwater Drilling

To systematically map offshore geological formations, the government has earmarked ₹28,534 crore specifically for large-scale 2D and 3D seismic survey operations. These advanced geophysical surveys will cover uncharted sea basins within India's Exclusive Economic Zone (EEZ) to identify commercial-grade hydrocarbon deposits and lower investment risks for upstream energy companies. A major share of the financial layout—totaling ₹43,200 crore—has been designated for exploratory drilling activities. This capital will fund the drilling of 60 deepwater and ultra-deepwater exploratory wells. Ocean drilling in deep offshore basins requires specialized technology, floating rigs, and extensive safety capital, which this allocation aims to subsidize and support.Infrastructure Development and Manufacturing FrameworkBeyond exploration, the scheme allocates significant funds to build long-term operational infrastructure and domestic manufacturing ecosystems. An amount of ₹10,000 crore has been designated for establishing shared production, storage, and evacuation facilities across select high-potential marine basins. Shared infrastructure reduces capital expenditure burdens for individual exploration companies and speeds up field development timelines.Additionally, ₹2,000 crore is allocated toward establishing a specialized manufacturing and service hub for the oil and gas sector. This framework aims to foster local equipment manufacturing, specialized maritime services, rig maintenance capabilities, and technical logistics, driving the 'Make in India' framework within high-tech offshore engineering.Hydrocarbon Targets, Import Savings, and Economic ImpactThe National Offshore Exploration Scheme sets ambitious quantitative targets to expand India’s domestic energy base. It aims to increase the national hydrocarbon resource base by over 600 million metric tonnes of oil equivalent (MMTOE), elevating total proven reserves from the current 1.6 billion tonnes of oil equivalent to 2.2 billion tonnes. Furthermore, annual domestic crude oil and natural gas production is targeted to rise from the present level of nearly 62 MMTOE to 80 MMTOE.From an economic perspective, successful implementation is projected to reduce India’s crude oil import bill by approximately ₹1 lakh crore ($12 billion) annually. By scaling up offshore activities, the government expects to generate extensive direct and indirect employment opportunities across shipbuilding, offshore engineering, logistics, environmental management, and specialized technical services.