The Oil and Natural Gas Corporation (ONGC) is considering the acquisition of deepwater drilling rigs or the formation of a joint venture to secure dedicated drilling capacity. These steps are being taken as part of the company's efforts to accelerate the exploration of offshore oil and gas reserves in line with the Samudra Manthan Mission program.
ONGC has issued an Expression of Interest (EOI) to engage a specialized global consultant for marine platform brokerage. The consultant's objective is to identify potential owners of drilling rigs or counterparties, conduct asset and valuation assessments, and support the state explorer in negotiations for potential ownership or joint venture formation.
According to the EOI, the initiative aims to establish dedicated drilling capacity for deepwater operations with priority access. The statement reads: 'ONGC is conducting a structured program to create capacity to ensure dedicated drilling capacity for deepwater vessels with priority access in support of the Samudra Manthan Mission. In this regard, ONGC is studying options for ownership or JV models for acquiring a drilling rig.'
The Union Council previously approved the Samudra Manthan program—the National Offshore Exploration Scheme—with allocations of ₹84,084 crore until 2030–2031. This centralized scheme is designed to boost India's search for offshore oil and gas reserves, particularly in deepwater and ultra-deepwater areas, to increase domestic production and reduce import dependence.
Under this scheme, the government will provide financial assistance of up to 50 percent of the cost of deepwater exploratory wells, with a maximum limit of ₹675 crore per well. The program includes drilling 60 deepwater exploratory wells, conducting large-scale seismic surveys, developing overall marine production and evacuation infrastructure, and establishing an Oil and Gas Production and Services Zone.
For such deepwater drilling operations, companies like ONGC require specialized drilling rigs. Currently, India lacks the manufacturing capability to build deepwater drilling rigs, forcing explorers to rely on foreign platforms, usually obtained through time-charter agreements.
The proposed consultant will help ONGC identify suitable global owners and contractors of drilling rigs, conduct commercial benchmarking and technical due diligence, and assist in negotiations for an ownership or JV deal. The work is structured in two phases. The first phase, lasting three months, will focus on identifying, screening, and compiling a list of potential counterparties and establishing a preliminary commercial basis for ONGC's decision on further action.
The second phase, which will last up to six months from commencement, will cover support for ownership or JV negotiations, documentation, financing coordination, and deal closure, including the delivery of the vessel to India. The consultant's mandate will include comparing daily rates of drilling rigs, as well as assessing buy-sell or JV deals based on recent global transactions, coordinating technical verification, and guiding negotiations on a non-binding term sheet covering equity distribution, management, charter economics, and estimated arrival timelines.
For a potential deal, ONGC is also considering a Special Purpose Vehicle (SPV) structure in GIFT City and evaluating a mix of equity and debt financing, including an option for external commercial borrowing, as per the EOI.
The EOI requests market intelligence on owners and contractors of drilling rigs with deepwater assets or new construction capabilities, including fleet specifications, financial health, and willingness to form joint ventures. ONGC has also asked potential advisors to provide information on global deals involving drilling rigs and semi-submersible platforms concluded over the past seven years. Particular interest was shown in experienced operators of deepwater vessels rated for depths of 1500 meters or more, aligning with the requirements of the Samudra Manthan Mission.
This move is made in the context of ONGC's desire to gain greater control over deepwater drilling capacity rather than being entirely dependent on third-party equipment availability, although the EOI does not specify the anticipated number, type, or cost of the drilling rigs to be acquired.