State-run energy major considers ownership or joint venture model as India steps up offshore oil and gas exploration under SamudraManthan.
Oil and Natural Gas Corporation (ONGC) is examining ways to secure dedicated deepwater drilling capacity as India intensifies efforts to explore offshore oil and gas reserves. The state-owned energy company is considering either acquiring deepwaterdrillships or entering into a joint venture with global rig owners. The move is linked to Mission SamudraManthan, the government’s national offshore exploration programme, which is aimed at expanding exploration in deepwater and ultra-deepwater areas and strengthening domestic hydrocarbon production.
ONGC has issued an Expression of Interest (EOI) to appoint a specialist global offshore rig-broking consultant. The proposed adviser will identify potential drillship owners and contractors, assess available assets and their valuations, and help ONGC evaluate an ownership or joint venture structure.
SamudraManthan targets deeper offshore reserves.
The Union Cabinet has approved the National Offshore Exploration Scheme, SamudraManthan, with an outlay of ₹84,084 crore through March 2031. The programme includes plans for 60 deepwater exploration wells, expanded seismic surveys, common offshore infrastructure and measures aimed at developing domestic capabilities across the oil and gas sector. Under the scheme, the government will provide financial support of up to 50% of eligible deepwater exploration costs, subject to a ceiling of ₹675 crore per well.
The initiative comes as India seeks to increase domestic oil and gas production and reduce its dependence on imports. Deepwater exploration is considered an important part of that effort, although it requires specialised equipment and substantial technical expertise.
Reducing dependence on hired rigs.
Deepwater drillships are highly specialised assets capable of operating in challenging offshore environments. India currently lacks domestic manufacturing capacity for such advanced drillships, meaning exploration companies often depend on foreign-owned rigs obtained through time-charter arrangements.
For ONGC, securing ownership or priority access could provide greater control over drilling schedules and reduce dependence on third-party rig availability. The proposed consultant would also benchmark international drillship transactions, conduct technical and commercial due diligence, and support negotiations covering ownership, governance, financing and charter arrangements.
ONGC is considering a phased approach. The initial phase would focus on identifying and shortlisting suitable international counterparties and assessing the commercial feasibility of potential deals. A subsequent phase could involve negotiations, documentation, financing coordination and bringing a selected drillship into India.
The company is also examining the possibility of establishing a special purpose vehicle in GIFT City and evaluating different equity and debt financing options. ONGC has not yet disclosed a final decision on the number, type, or cost of drillships it may acquire. The current exercise indicates that the company is assessing long-term capacity requirements as India moves towards more intensive deepwater exploration under SamudraManthan.
