Why in the News?
The Union Cabinet approved the Samudra Manthan Scheme (31 July 2026), a ₹84,084 crore National Offshore Exploration Scheme to boost domestic oil and gas production and reduce India’s growing import dependence.
Key Components
- Deepwater Drilling (₹43,200 crore): Support for 60 exploratory wells with funding up to 50% of drilling cost or ₹675 crore per well.
- Offshore Data Acquisition (₹28,534 crore): Seismic surveys and geological data interpretation.
- Common Infrastructure (₹10,000 crore): Shared offshore production facilities and pipelines.
- Manufacturing & Service Zones (₹2,000 crore): Promote indigenous oil and gas equipment manufacturing.
Objectives
- Reduce crude oil and gas import dependence.
- Expand hydrocarbon reserves from 1,600 MTOE to 2,200 MTOE.
- Increase production from 62 MTOE to 80 MTOE.
- Strengthen India’s energy security and support Atmanirbhar Bharat.
Why is it Needed?
- India imports over 88% of crude oil and about 50% of natural gas.
- Deepwater exploration is costly and risky, discouraging private investment.
- Existing oil fields are witnessing declining production.
Challenges
- Long gestation period (8 to 10 years).
- High risk of unsuccessful exploration.
- High development costs may affect commercial viability.
- Dependence on foreign deepwater technology.
- Need to offset declining output from ageing fields.
Value Addition
- Major offshore basins: Krishna Godavari, Cauvery, Mahanadi, Mumbai Offshore and Andaman.
- Deepwater: 400 to 1,500 m water depth.
- Ultra Deepwater: More than 1,500 m.
[2025] Consider the following activities:
I. Production of crude oil
II. Refining, storage and distribution of petroleum
III. Marketing and sale of petroleum products
IV. Production of natural gas
How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?
[A] Only one
[B] Only two
[C] Only three
[D] All the four