State-run Oil and Natural Gas Corporation (ONGC) is planning a major push in deep water oil exploration, which could see a spend of as much as $18-20 billion on hiring drilling rigs. This would be the largest ever exploration by ONGC.
Last month, ONGC issued a global tender for hiring deep water oil rigs as part of the government’s Samudra Manthan mission, which seeks to enhance India’s energy security. According to people familiar with the matter, several domestic and international drilling companies showed interest. Around a dozen firms attended a pre-bid meeting held in Mumbai on 20th March.
Oil and Natural Gas Corporation plans a massive oil exploration program. The company will spend between $18 to $20 billion to hire deep-water drilling rigs. This initiative aims to boost India's energy security. ONGC is seeking a mix of drill ships and semi-submersible rigs for… pic.twitter.com/h1VoQ8iCrr
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“The tender seeks a mix of drill ships and semi-submersible rigs for up to five years. This programme will cost ONGC around $18-20 billion,” a senior industry official said. He also pointed out that ONGC wants the hired rigs to be put in place within 80 days, which also indicates the urgency of the project. “ONGC is seeking mobilisation of the rigs within 80 days, which highlights ONGC’s urgency to scale up deep water activity,” he added.
ONGC is already engaged in projects in the Krishna-Godavari (KG) Basin in the east coast of India, and also ultra-deep water drilling in the Andaman region. Meanwhile, ONGC is also in talks with global oil majors like BP, ExxonMobil, TotalEnergies, and Petrobras for a partnership in the project as the risk factor in these high-cost projects is high.
The tender, floated in February, is part of an international bidding process aimed at bringing in experienced offshore drilling contractors.
