India Bets Rs 80K Crore on Deepwater Oil

India's petroleum and natural gas ministry is proposing an Rs 80,000-crore incentive package to stimulate deepwater oil and gas exploration. This initiative, part of the National Deepwater Exploration Mission (Samudra Manthan), aims to attract foreign investment by covering up to half the expense of drilling exploratory wells.

The government's support is designed to mitigate the high costs and inherent risks associated with deepwater exploration, which have deterred major international firms. The funding will be capped per well and may also extend to 3D seismic surveys, encouraging both state-run and private entities.

Alongside this financial incentive, India is actively auctioning eighteen deepwater and ultra-deepwater blocks. The deadline for bids for these blocks has been set for September seventeenth. This move represents a departure from previous regimes, offering direct financial support rather than relying solely on minimum work programs.

This strategic push aims to enhance the nation's energy security and tap into its vast, yet underexplored, deepwater hydrocarbon reserves. The program has already seen its first deepwater exploratory well spudded by ONGC under the Samudra Manthan initiative.