Cochin Shipyard Eyes $550 Million Jack-Up Rig Deal with ONGC

03 Dec 2024 CW Team

The shipyard has bolstered its prospects by signing a Memorandum of Understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET), a subsidiary of Singapore-based Seatrium Ltd, for design and critical equipment supply for these rigs. The partnership aligns with India's "Make in India" initiative, aiming to enhance local manufacturing capabilities for Mobile Offshore Drilling Units (MODUs).

In its stock exchange filing on November 22, CSL highlighted that this collaboration leverages its shipbuilding expertise and SLET’s advanced technical and design capabilities to meet the demands of India's offshore energy sector. Seatrium Ltd, formed after Sembcorp Marine’s acquisition of Keppel Offshore & Marine in 2023, affirmed its commitment to delivering innovative and efficient offshore solutions through this partnership.

ONGC’s board has already approved the rig construction project, which aims to replace aging rigs in operation for over four decades. According to Om Prakash Singh, Director of Technology and Field Services at ONGC, the move to build rigs locally will help Indian shipyards develop expertise in manufacturing advanced offshore platforms.

This potential order would enable Cochin Shipyard to diversify its portfolio, which currently includes cargo vessels, passenger ships, dredgers, hybrid tugs, and defence ships such as aircraft carriers and ASW Corvettes.

Under the government's financial assistance scheme for shipbuilding, MODUs and jack-up rigs are categorised as specialised vessels eligible for state aid. The scheme, set to expire in March 2026, provides a 14% subsidy for orders secured until March 2025, with a reduced 11% subsidy in its final year. There is no cap on subsidies for specialised vessels like MODUs, unlike standard ships where aid is capped at Rs 400 million.

The Ministry of Ports, Shipping, and Waterways is currently drafting a new shipbuilding policy that proposes enhanced subsidies, including 25% for specialised vessels and up to 30% for green and futuristic technology ships. The revised scheme, expected to run until 2034 with possible extensions through 2047, aims to provide long-term stability and visibility for domestic shipyards.

(ET)

Cochin Shipyard Ltd (CSL), India’s largest commercial shipbuilder, is in advanced discussions with Oil and Natural Gas Corporation Ltd (ONGC) for a potential $550 million order to construct two offshore jack-up oil drilling rigs, sources have revealed. The shipyard has bolstered its prospects by signing a Memorandum of Understanding (MoU) with Seatrium Letourneau USA, Inc. (SLET), a subsidiary of Singapore-based Seatrium Ltd, for design and critical equipment supply for these rigs. The partnership aligns with India's Make in India initiative, aiming to enhance local manufacturing capabilities for Mobile Offshore Drilling Units (MODUs). In its stock exchange filing on November 22, CSL highlighted that this collaboration leverages its shipbuilding expertise and SLET’s advanced technical and design capabilities to meet the demands of India's offshore energy sector. Seatrium Ltd, formed after Sembcorp Marine’s acquisition of Keppel Offshore & Marine in 2023, affirmed its commitment to delivering innovative and efficient offshore solutions through this partnership. ONGC’s board has already approved the rig construction project, which aims to replace aging rigs in operation for over four decades. According to Om Prakash Singh, Director of Technology and Field Services at ONGC, the move to build rigs locally will help Indian shipyards develop expertise in manufacturing advanced offshore platforms. This potential order would enable Cochin Shipyard to diversify its portfolio, which currently includes cargo vessels, passenger ships, dredgers, hybrid tugs, and defence ships such as aircraft carriers and ASW Corvettes. Under the government's financial assistance scheme for shipbuilding, MODUs and jack-up rigs are categorised as specialised vessels eligible for state aid. The scheme, set to expire in March 2026, provides a 14% subsidy for orders secured until March 2025, with a reduced 11% subsidy in its final year. There is no cap on subsidies for specialised vessels like MODUs, unlike standard ships where aid is capped at Rs 400 million. The Ministry of Ports, Shipping, and Waterways is currently drafting a new shipbuilding policy that proposes enhanced subsidies, including 25% for specialised vessels and up to 30% for green and futuristic technology ships. The revised scheme, expected to run until 2034 with possible extensions through 2047, aims to provide long-term stability and visibility for domestic shipyards. (ET)

Real Estate

17 Sep 2025

Indian REITs Offer 6-7.5 per cent Yield, Surpassing Many Global Markets

Indian Real Estate Investment Trusts (REITs) are delivering average yields of 6–7.5 per cent for unitholders, outperforming many mature markets, including the US, according to a report by Credai and Anarock.Credai, the apex body of Indian real estate developers, and property consultant Anarock released the report Indian REITs – A Gateway to Institutional Real Estate at an event in India.Currently, India has five listed REITs – Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust pr..

Infrastructure Energy

17 Sep 2025

Insolation Energy Wins 226 MW Solar Projects Under PM-KUSUM

Insolation Energy on Monday announced securing multiple solar projects totalling 226.45 MW, with an investment of Rs 7.5 billion, under the PM-KUSUM scheme. The orders were awarded to its wholly-owned subsidiary, Insolation Green Energy Pvt Ltd, by Jaipur Vidyut Vitran Nigam Limited for 20 sites and Ajmer Vidyut Vitran Nigam Limited for 115 sites, the company informed the exchanges.“The combined SPV solar power plants will total 226.45 MW under PM-KUSUM Component A, with the final levelised tariff at Rs 3.04 per unit for 16 sites, Rs 2.82 per unit for 5 sites, Rs 2.75 per unit for 53 sites, ..

Infrastructure Energy

17 Sep 2025

Numaligarh Refinery Awards EPC Contract for Rooftop Solar Projects

State-owned Numaligarh Refinery Ltd. (NRL) has awarded a Letter of Award to Solarium Green Energy Ltd. for the rate contract covering the Engineering, Procurement, and Construction (EPC) of grid-connected rooftop solar PV projects at various locations. The projects fall within the categories of 51–200 kW and 201–1000 kW. Notable projects include a 140 kW rooftop solar plant at NRL Assam, a 760 kW plant at NRL Assam, and a 280 kW plant at NRL West Bengal.The supply order covers ex-manufacturing works and the dispatch price for plant and equipment for the 140 kW, 760 kW, and 280 kW rooftop s..