Oil and Natural Gas Corporation (ONGC) is exploring the acquisition of deepwater drillships or the formation of a joint venture (JV) to secure dedicated drilling capacity. The move comes as the company steps up offshore exploration under its Mission Samudra Manthan programme to discover new oil and gas reserves. ONGC has issued an Expression of Interest (EOI) to appoint a specialist global offshore rig-broking consultant. The consultant will help identify potential drillship owners and counterparties, evaluate assets and valuations, and support negotiations for a possible ownership or JV arrangement. Through the initiative, ONGC aims to establish dedicated, priority-access deepwater drilling capacity for its offshore exploration programme.
ONGC Seeks Greater Control Over Deepwater Drilling
According to the EOI, ONGC is pursuing a structured capacity-creation programme to secure dedicated deepwater drillship capacity for Mission Samudra Manthan. The company is therefore evaluating both drillship ownership and joint-venture models. By securing dedicated assets, ONGC aims to reduce its dependence on third-party rig availability and improve its ability to schedule deepwater exploration campaigns. However, the EOI does not specify the number, type or acquisition cost of drillships that ONGC may ultimately pursue.
Samudra Manthan Targets India’s Offshore Resources
The initiative follows the Union Cabinet’s approval of Samudra Manthan, the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore through 2030-31. The central-sector scheme seeks to accelerate exploration of India’s offshore oil and gas resources, particularly in deepwater and ultra-deepwater areas. At the same time, the programme aims to increase domestic hydrocarbon production and reduce India’s dependence on imports. Under the scheme, the government will provide financial support of up to 50% of the cost of deepwater exploration wells, subject to a maximum of ₹675 crore per well.
India Depends on Foreign Deepwater Drillships
India currently lacks the manufacturing capability to build deepwater drillships, leaving oil and gas explorers dependent largely on foreign-owned rigs. Companies typically secure these specialised drilling units through time-charter arrangements. However, limited rig availability and global competition for deepwater assets can affect drilling schedules and project economics. ONGC’s proposed ownership or JV strategy could therefore provide greater control over drilling capacity and improve operational flexibility for long-term offshore exploration programmes.
Deepwater Capacity Becomes Strategic Priority
ONGC’s initiative highlights the growing importance of deepwater exploration in India’s efforts to strengthen domestic oil and gas production. By exploring drillship ownership or a strategic JV, ONGC could gain greater control over specialised drilling capacity and reduce its exposure to fluctuations in the international rig market. As reported by thehindubusinessline.com, the initiative, therefore, represents a significant step in aligning ONGC’s drilling capabilities with the government’s broader offshore exploration, energy security and import-reduction objectives under Mission Samudra Manthan.
