India’s Oil and Natural Gas Corporation (ONGC) is making headlines with its strategic plan to build two advanced offshore jack-up drilling rigs domestically, valued at approximately $500-$550 million. This move aims to replace older rigs, some of which have been operational for over four decades, while also fostering growth and innovation in India’s shipbuilding industry.
Revitalizing India’s Offshore Rig Capabilities
India hasn’t constructed offshore drilling rigs since the 1990s. ONGC’s decision to collaborate with domestic shipyards marks a significant step toward rebuilding this capability. Historically, only three rigs—two jack-up rigs and one floater—were built in Indian shipyards. This initiative is expected to rejuvenate the local shipbuilding sector and enable it to meet international standards.
Why This Investment Matters
- Upgrading Fleet Efficiency
ONGC operates 113 drilling rigs, including 38 offshore rigs. Many of these aging rigs will be retired, making way for advanced, company-owned rigs that promise better performance and reliability. - Reducing Dependence on Rentals
Currently, ONGC owns only about 20% of its offshore rigs, with the rest being charter-hired. This move could reduce dependency on external resources and bring long-term cost savings. - Skill Development
The new rigs will serve as a training ground for ONGC engineers, helping them gain expertise in managing advanced rigs. This aligns with the company’s broader vision of self-reliance.
The Path Ahead
The development of these rigs will take approximately 3-3.5 years, with construction expected to enhance the capabilities of Indian shipyards to manufacture high-tech offshore equipment. Experts suggest that such projects could also position India as a competitive player in the global oilfield equipment market.
Published: Nov. 27, Source: The Economic Time
