Govt to bankroll half the cost of deepwater wells, but wants its money back from winners
Reported by Economic Times Industry, not nibnow. We are not the publisher of this story, only the source is.
The government is funding up to half of the exploration costs for state run firms under the Samudra Manthan scheme, reducing the financial risk of deepwater drilling. Successful discoveries will require repayment, creating a mechanism where taxpayers recover funds only when oil or gas is found.
The Indian government is initiating the Samudra Manthan scheme to encourage deepwater exploration for hydrocarbons. This scheme will provide financial assistance up to 50 percent of the costs for exploratory wells. Eligible wells will have a cost cap, and only state-run firms can apply for funding. The government expects repayment only if successful oil or gas is discovered during the exploration.
Deepwater oil and gas exploration involves drilling in very deep ocean waters, which requires advanced technology and significant capital investment. Governments often provide financial incentives or risk sharing mechanisms to encourage domestic energy production and reduce import dependency.
- •Whether state run firms submit proposals to take advantage of the funding under the Samudra Manthan scheme
- •Announcements regarding specific cost caps and eligibility criteria for the exploratory wells
- •Updates on new deepwater hydrocarbon discoveries that trigger the repayment obligation