Centre Plans ₹80,000 Crore Deepwater Oil Push
The Centre is preparing a proposed ₹80,000 crore incentive package to attract global companies to India’s deepwater oil and gas exploration sector. The plan could cover part of the cost of drilling exploratory wells, reducing the financial risks faced by energy companies.
₹80,000 Crore Deepwater Exploration Package
The proposed support is expected to form part of the National Deepwater Exploration Mission, also known as Samudra Manthan.
Under the plan, the government could reimburse companies for up to 50% of the cost of drilling deepwater exploration wells. Financial assistance for each well may be capped to prevent excessive expenditure.
The Centre is also considering partial funding for three-dimensional seismic surveys used to identify potentially promising oil and gas formations. The incentives could be available to both public and private exploration companies.
Offshore Drilling Costs Deter Investors
Drilling a single deepwater exploratory well can cost between ₹1,000 crore and ₹1,200 crore, depending on geological conditions and water depth. Ultra-deepwater drilling can require significantly higher investment.
These costs, combined with the possibility of failing to discover commercially viable reserves, have discouraged several international companies from investing in Indian offshore blocks.
The proposed package aims to share part of the exploration risk while attracting companies with advanced deepwater drilling technology and expertise.
India Expands Offshore Oil Exploration
India is offering deepwater and ultra-deepwater blocks under its ongoing Open Acreage Licensing Policy bidding rounds. The initiative seeks to accelerate exploration in offshore regions that remain largely underdeveloped.
ONGC has also begun drilling a deepwater exploratory well under the Samudra Manthan programme.
The wider mission aims to increase domestic oil and gas production, attract foreign investment and reduce India’s dependence on imported crude oil and natural gas.
