India has launched the ₹80,000 crore Samudra Manthan program in a major push to strengthen its energy security and increase domestic crude oil production. The initiative introduces a new approach to deep-water oil exploration by allowing the government to share the financial risks of drilling expensive offshore wells. The move marks a significant policy shift and aims to encourage greater participation from both Indian and global energy companies.

The government has announced that it will reimburse up to 50% of the drilling cost for eligible deep-water wells under the new program. A single deep-water well in India usually costs between ₹1,000 crore and ₹1,200 crore, while ultra-deep-water wells require even higher investments. These high costs have discouraged many companies from investing in offshore exploration over the years. Through Samudra Manthan, the government plans to reduce this financial burden and make exploration projects more commercially attractive.

India has launched the initiative to reduce its dependence on imported crude oil. The country currently imports nearly 85% of the crude oil it consumes. Deep-water hydrocarbon reserves offer one of the strongest opportunities to increase domestic production and improve long-term energy security. The government believes that expanding offshore exploration can help reduce import dependence and strengthen India's energy sector.

The Samudra Manthan program aims to attract both public and private companies by lowering the financial risks linked to offshore drilling. The government expects the new incentives to encourage greater investment in unexplored offshore regions. Companies with advanced deep-water exploration technology and expertise may also find India's offshore sector more attractive under the revised policy.

To support the initiative, the government has extended the bidding deadline under the Open Acreage Licensing Program until September 17, 2026. The extension covers 18 deep-water and ultra-deep-water exploration blocks located across frontier basins with strong geological potential. The additional time will allow interested companies to study the available data, assess the benefits of the new incentive scheme, and prepare their bids more effectively.

The financial assistance under Samudra Manthan goes beyond drilling support. The government will also partly fund 3D seismic surveys, which play a crucial role in offshore exploration. These surveys help companies identify underground oil and gas reserves with greater accuracy before drilling begins. At the same time, the government has decided to cap financial assistance per well. This step will control project costs while ensuring that companies receive meaningful support.

The incentives will be available to both state-owned companies and private explorers. Oil and Natural Gas Corporation (ONGC) has already taken the first step under the new program. The company has spudded its first deep-water appraisal well in the Mahanadi Basin, signalling the early implementation of the government's new strategy. The development reflects growing momentum under the Samudra Manthan mission and demonstrates confidence in the revised exploration framework.

The program also replaces the earlier minimum work program regime, which required companies to drill a fixed number of wells within a specified period. Under that system, companies faced penalties if they failed to meet drilling commitments, even when exploration costs remained extremely high. The new approach removes that burden by allowing the government to directly share exploration risks. This change makes offshore drilling more practical and financially viable for investors.

Apart from financial incentives, the government is working to improve the quality of geological information available to exploration companies. Existing 2D seismic data collected over several years is being reprocessed with advanced imaging technologies. Officials are also planning fresh 3D seismic surveys across promising offshore regions. These improvements will provide clearer images of underground structures and help companies identify drilling targets with greater precision.

Better geological data will also strengthen exploration planning. Improved imaging will refine geological models, reduce uncertainty during drilling, and increase the chances of successful discoveries. Companies will gain access to more reliable information before making large financial commitments, which could improve exploration outcomes across India's offshore basins.

The government expects the Samudra Manthan program to attract international energy companies with expertise in deep-water exploration and advanced offshore technologies. Risk-sharing, improved geological data, and financial support are expected to create a more competitive investment environment. These measures may encourage companies that had previously stayed away from India's offshore sector to reconsider investment opportunities.

The initiative represents one of the government's most ambitious efforts to transform India's upstream oil and gas sector in recent years. By changing the exploration policy, sharing financial risks, and modernising geological data, the Centre aims to unlock the country's offshore hydrocarbon resources. The Samudra Manthan program also supports India's broader goal of strengthening energy security, increasing domestic crude oil production, and reducing reliance on imported oil in the years ahead.