Oil and Natural Gas Corporation (ONGC) has initiated discussions with domestic shipyards to construct two state-of-the-art offshore jack-up drilling rigs, with an estimated investment of USD 500-550 million. This strategic move, recently approved by ONGC’s board, aims to modernize its fleet by replacing aging rigs, some of which have been in service for over four decades.
With the planned retirement of older rigs, the initiative is expected to provide a significant boost to India’s shipbuilding industry. It will enable domestic shipyards to acquire expertise in manufacturing advanced offshore rigs, a critical capability for the sector’s growth.
ONGC currently operates 113 drilling rigs, comprising 38 offshore rigs and 75 onshore rigs, alongside 90 workover rigs. However, only 20 percent of the offshore rigs are owned by ONGC, with the rest being chartered. In contrast, the majority of its onshore rigs, nearly 80 percent, are company-owned.
If the plan materializes, it could revitalize India’s shipbuilding industry while enhancing ONGC’s operational efficiency. This development aligns with the company’s long-term goals of strengthening its infrastructure and underscores its commitment to supporting the domestic manufacturing sector.
