Oil and Natural Gas Corporation (ONGC) is reportedly exploring partnerships with domestic shipyards to construct two offshore jack-up drilling rigs valued at approximately $500–550m, reported the Economic Times.

This initiative aims to replace some of ONGC's ageing rigs, which have been operational for more than four decades, according to Om Prakash Singh, ONGC director of technology & field services.

The move is expected to bolster Indian shipyards' capabilities in manufacturing advanced offshore rigs.

Offshore drilling rigs have not been built in India since 1990, when two jack-up rigs and one floater were produced locally for ONGC's use. Constructing a rig typically takes three to three and a half years.

The company currently operates 113 drilling rigs, including 38 offshore rigs, with more additions planned. It also manages around 90 workover rigs, the report stated.

ONGC owns around one-fifth of its offshore drilling rigs, with the remainder being charter-hired. For onshore drilling, the company hires only around one-fifth of its rigs, owning the rest.

According to the report, Singh highlighted that company-owned rigs serve as a training ground for ONGC executives, equipping them with skills to manage chartered rigs.

In related developments, ONGC has awarded TGS a 3D streamer contract to survey the Mahanadi basin offshore the east coast of India.

This contract, set to commence in January 2025, involves the mobilisation of the Ramform Sovereign marine seismic vessel for a six-month period, reinforcing TGS' commitment to delivering high-quality data solutions.

Additionally, ONGC opened a new well in its deep-sea project in the Krishna Godavari basin earlier this year, aiming to boost the production of crude oil and natural gas.

This development is part of ONGC's flagship project in the Bay of Bengal and follows the start of oil production from the KG-DWN-98/2 or KG-D5 block earlier this year. The company has not disclosed the production capacity of the new well.