ONGC Moves to Acquire Deepwater Drillships Under Samudra Manthan

ONGC's EOI for a Specialist Rig-Broker

State-owned Oil and Natural Gas Corporation (ONGC) has issued an Expression of Interest to engage a specialist global offshore rig-broking consultant to identify potential drillship owners or counterparties, assess assets and valuations, and support negotiations for an ownership or joint venture arrangement. The move is described in the EOI as a "structured capacity-creation programme to secure dedicated, priority-access deepwater drillship capacity" under Mission Samudra Manthan.

Two-Phase Consultant Assignment

The advisory assignment has been split into two phases. The first phase, expected to run for three months, covers the identification, screening and shortlisting of potential counterparties and the establishment of an indicative commercial basis to help ONGC decide whether, and with whom, to proceed. The second phase, lasting up to six months from commencement, will provide ownership or JV negotiation support, documentation, financing coordination and transaction closure, including arrangements to bring the rig into India.

Samudra Manthan Backing and Fiscal Support

The initiative sits within Samudra Manthan, the National Offshore Exploration Scheme approved last month by the Union Cabinet with an outlay of Rs 84,084 crore through 2030-31. The central-sector scheme is designed to accelerate exploration of India's offshore oil and gas resources, particularly in deepwater and ultra-deepwater areas, and to reduce import dependence. Under the scheme, the government will provide financial support of up to 50 per cent of the cost of deepwater exploration wells, subject to a cap of Rs 675 crore per well.

Drillship Capacity Gap in India

The push for drillship ownership or a JV reflects the fact that India does not currently have the manufacturing capability to build deepwater drillships, leaving explorers dependent on foreign-owned rigs typically secured through time-charter arrangements. The Samudra Manthan program includes drilling 60 deepwater exploration wells, large-scale seismic surveys, development of common offshore production and evacuation infrastructure, and creation of an Oil and Gas Manufacturing and Services Zone, all of which require specialised drillship capacity that ONGC is now seeking to lock in.