ONGC Targets Deepwater Drillships for India’s Offshore Exploration

Oil and Natural Gas Corporation (ONGC) is actively moving to acquire deepwater drillships or establish a joint venture, a critical step for its “Mission Samudra Manthan” program. This strategic push aims to significantly accelerate the exploration of India’s vast offshore oil and gas resources.

The initiative is underpinned by the Union Cabinet’s approval of the “Samudra Manthan” scheme, a National Offshore Exploration Scheme with a substantial outlay. This central-sector scheme is designed to enhance domestic production and reduce India’s reliance on imports.

Key Investment Figures

• Total scheme outlay: ₹84,084 crore
• Implementation period: Through 2030-31
• Deepwater exploration well subsidy: Up to 50 percent of cost, capped at ₹675 crore per well
• Planned deepwater exploration wells: 60

To execute this ambitious plan, ONGC has issued an Expression of Interest (EOI) for a specialized global offshore rig-broking consultant. This expert will be crucial in identifying potential drillship owners or partners, evaluating assets, and assisting with negotiations.

Consultant’s Strategic Mandate

• Identifying suitable global drillship owners and contractors with deepwater assets or newbuild capacity.
• Conducting commercial benchmarking and technical due diligence on identified assets.
• Leading negotiations for a non-binding indicative term sheet, covering equity split, governance, and charter economics.

ONGC is also considering structuring the potential transaction through a GIFT City special purpose vehicle (SPV). The company plans to explore an equity-debt funding mix, which includes external commercial borrowing, to finance these acquisitions.

India currently lacks the manufacturing capability for deepwater drillships, making ONGC dependent on foreign-owned rigs typically secured through time-charter arrangements. Securing dedicated, priority-access capacity is therefore paramount for the success of Mission Samudra Manthan.

This move is a clear signal of India’s commitment to energy self-reliance and unlocking its deepwater potential, a significant strategic shift in the nation’s energy landscape.