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Samudra Manthan: India's Offshore Oil Push Targets Energy Security

Samudra Manthan: India's Offshore Oil Push Targets Energy Security
Explainer: How Samudra Manthan project aims to deliver energy security · financialexpress.com

India wants to find more oil and gas under the sea so it doesn't have to buy so much from other countries.

Right now, India buys almost 9 out of every 10 barrels of the oil it needs from other countries.

The government has started a big project called Samudra Manthan, which means "churning of the ocean."

The project will spend about Rs 84,084 crore to explore for oil and gas deep under the sea.

It will give companies better maps of the sea floor and help pay for the expensive drilling.

One deepwater well can cost up to $150 million, so the government will share some of that cost.

The plan focuses on areas like the Krishna-Godavari and Andaman regions in India's ocean waters.

If the project works, India could make more oil and gas at home and need to buy less from abroad.

But there are risks: a well might come up dry, and it takes many years before oil can actually be pumped.

Still, the government hopes the project will make India's energy supply safer and less expensive.

Key facts

Scheme
Samudra Manthan (National Offshore Exploration Scheme)
Total outlay
Rs 84,084 crore
Duration
Through FY 2030-31
Drilling budget
Rs 43,200 crore for 60 deepwater exploration wells
Maximum government support
Up to 50% of eligible cost, capped at Rs 675 crore per well
Typical deepwater well cost
$125-150 million
Annual crude import bill
Nearly $144 billion
Production target
Raise output from about 62 MMTOE to 80 MMTOE

Sources

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