ONGC is evaluating the purchase of deepwater drillships or a joint venture with global players to secure dedicated offshore drilling capacity.
The move is part of Mission Samudra Manthan, aimed at accelerating deepwater oil and gas exploration in India.
Highlights
- ONGC is exploring ownership or a joint venture model for acquiring deepwater drillships.
- The company has issued an EOI to appoint a global offshore rig-broking consultant.
- Mission Samudra Manthan has an outlay of ₹84,084 crore through 2030-31.
- Government support can cover up to 50% of deepwater exploration well costs, capped at ₹675 crore per well.
- The programme includes drilling 60 deepwater exploration wells.
- ONGC is looking at drillships capable of operating in water depths of 1,500 metres or more.
Story
State-owned Oil and Natural Gas Corporation (ONGC) is exploring the acquisition of deepwater drillships or the creation of a joint venture as it looks to strengthen offshore drilling capacity under the government’s Mission Samudra Manthan programme.
The company has issued an Expression of Interest (EOI) to appoint a specialist global offshore rig-broking consultant. The adviser will help ONGC identify potential drillship owners and partners, assess available assets and valuations, and assist in negotiations for a possible ownership or joint venture arrangement.
The objective is to create dedicated and priority-access deepwater drilling capacity for ONGC. At present, Indian exploration companies largely depend on foreign-owned rigs secured through time-charter agreements because India does not have domestic manufacturing capability for deepwater drillships.
The Union Cabinet recently approved Samudra Manthan, the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore through 2030-31.
The programme aims to accelerate exploration of India’s offshore oil and gas resources, particularly in deepwater and ultra-deepwater regions, while helping reduce the country’s dependence on imported energy.
Under the scheme, the government will provide financial assistance of up to 50% of the cost of deepwater exploration wells, subject to a maximum support of ₹675 crore per well.
The programme includes plans to drill 60 deepwater exploration wells, conduct large-scale seismic surveys, develop common offshore production and evacuation infrastructure, and establish an Oil and Gas Manufacturing and Services Zone.
ONGC’s proposed consultant will also conduct commercial benchmarking, technical due diligence and negotiations with potential partners.
The assignment will be carried out in two phases. The first phase, expected to last around three months, will focus on identifying and shortlisting possible counterparties and establishing an indicative commercial framework.
The second phase could run for up to six months and would include negotiations, documentation, financing coordination and completion of the transaction, including bringing the drillship to India.
ONGC is also evaluating the possibility of setting up a special purpose vehicle in GIFT City and considering a mix of equity and debt funding, including external commercial borrowing.
The company is particularly seeking experience involving deepwater-capable floating rigs designed for water depths of 1,500 metres or more.
The initiative could give ONGC greater control over offshore drilling availability and reduce its dependence on third-party rig capacity as India expands exploration in deep and ultra-deepwater regions.
