The Government of India is preparing an ₹80,000 crore incentive package to encourage oil and gas exploration in deepwater and ultra-deepwater regions. The proposed initiative is designed to reduce the high financial risks associated with offshore drilling and attract global energy companies with advanced exploration capabilities.

Under the proposed framework, the government may reimburse up to 50 percent of the cost of drilling exploratory wells, making deepwater projects more commercially viable. Offshore exploration requires significant investment and advanced technology, and the new package is expected to improve investor confidence while accelerating domestic hydrocarbon production.

The incentive programme is expected to complement the ongoing auction of 18 deepwater and ultra-deepwater blocks under the Open Acreage Licensing Programme (OALP). The bid deadline has been extended to allow prospective investors to evaluate the proposed incentives before submitting their applications.

India currently imports nearly 85 percent of its crude oil requirements, making energy security a key national priority. By encouraging exploration in untapped offshore reserves, the government aims to increase domestic production, reduce import dependence and strengthen the country’s long-term energy resilience.

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Industry experts believe the proposed package could mark a significant shift in India’s upstream energy sector by attracting international expertise and fresh investment into high-potential offshore basins. If implemented, the initiative is expected to support future discoveries while advancing India’s goal of achieving greater energy self-reliance.

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