Oil and Natural Gas Corp (ONGC) is in discussions with domestic shipyards to construct two offshore jack-up drilling rigs, valued at approximately $500-550 million, as part of its strategic move to replace aging equipment. ONGC’s board recently approved the plan to manufacture these rigs, aimed at modernizing the company’s offshore drilling capabilities. These new rigs will replace several of ONGC’s existing rigs, some of which have been operational for over four decades and are due for retirement in the coming years.

The initiative not only strengthens ONGC’s operational capacity but also presents an opportunity for Indian shipyards to expand their expertise in building advanced offshore rigs. As noted by Om Prakash Singh, director of technology & field services at ONGC, this move will help develop local shipbuilding capabilities for offshore infrastructure. Offshore rigs have not been constructed in India since 1990, and the new project is expected to reintroduce this capability to the country. Before 1990, ONGC had two jack-up rigs and one floater built at Indian shipyards for its operations.

Currently, ONGC operates 113 drilling rigs, including 38 offshore rigs, with plans to expand the fleet further. While the company owns approximately one-fifth of the rigs used for offshore operations, the majority are chartered. For onshore operations, ONGC owns most of its rigs, with only about one-fifth chartered. Singh also highlighted that company-owned rigs play a critical role in training ONGC executives, who use their skills to manage chartered rigs. The construction of a jack-up rig typically takes around 3 to 3.5 years.