India's Energy Leap: Hardeep Singh Puri Unveils Massive Offshore and CBM Push
Union Minister Hardeep Singh Puri unveils Samudra Manthan Yojana and new CBM contracts to boost India's domestic oil and gas production.
In a decisive move to strengthen national energy security and ramp up domestic hydrocarbon output, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has announced a series of strategic milestones. Speaking at an industry gathering in New Delhi, the Minister detailed a transition toward a far more intensive exploration and production (E&P) phase, aimed at turning India's geological potential into tangible productive reserves.
Unlocking the 'No-Go' Zones
One of the most significant revelations made by Minister Puri was the unprecedented opening of sedimentary basins. In a move he described as unique on a global scale, the government has unlocked nearly 1 million square kilometers of land and sea that were previously designated as "no-go" areas.
Out of India's 3.5 million square kilometers of sedimentary basins, over 99% of these previously restricted offshore and onshore zones are now open for active bidding. The impact of this policy shift is already evident; while approximately 75% of bids in rounds up to OALP Round 9 came from these areas, the Minister expects nearly 100% of bids in OALP Rounds 10 and 11 to originate from these newly accessible zones. Furthermore, over 2.96 lakh square kilometers of acreage have been offered across various basins under these latest rounds.
The Samudra Manthan Yojana: A High-Stakes Gamble
To tackle the inherent risks of deepwater and offshore drilling, the government has introduced the Samudra Manthan Yojana. This flagship initiative is designed to incentivize private sector investment through a state-backed risk-sharing model.
The scale of the initiative is massive:
- Financial Outlay: The Union Cabinet has approved a Phase-I outlay of ₹84,084 crore extending up to FY 2030–31.
- Drilling Targets: Government resources of up to ₹84,700 crore are being made available to facilitate the drilling of approximately 150 wells over a three-year period.
Minister Puri emphasized that this move ends years of neglect in the sector, providing the necessary financial cushion to encourage companies to explore high-risk, high-reward deepwater territories.
Tapping into Coal Bed Methane (CBM)
Beyond traditional oil and gas, India is aggressively pursuing unconventional gas sources. The Minister announced the award of eight contracts under the Special Coal Bed Methane (CBM) Bid Rounds for 2025 and 2026.
This push is backed by significant potential, with India's CBM resource base estimated at approximately 2,600 billion cubic metres (BCM). By awarding these contracts, the government aims to diversify its energy mix and reduce reliance on imports.
Strategic Roadmap and Current Progress
To ensure transparency and guide future investments, the government has released the India Hydrocarbon Outlook 2026. This strategic document serves as a map for policy initiatives and highlights emerging opportunities within the sector.
The momentum is already visible in the field. In FY 2025-26, a total of 674 wells were drilled across the country, consisting of:
- 131 exploratory wells aimed at discovering new reserves.
- 543 development wells focused on extracting known resources.
"All I can say is that, after many years of neglect, we are moving towards a much more intensive and, I believe, successful exploration and production (E&P) phase," stated Minister Puri.