ONGC plans $20 billion deepwater push amid energy security concerns

ONGC plans to spend $18-20 billion to hire deepwater rigs in its largest exploration push, seeking drillships and semi-submersibles for up to five years to boost production

State-run Oil and Natural Gas Corp (ONGC) is expected to spend around $18–20 billion to hire deepwater drilling rigs for its oil exploration programme, reported The Economic Times, citing sources.

Why it matters

The move comes at a time when India is trying to reduce its dependence on imported energy and strengthen domestic production amid geopolitical uncertainty.

What’s happening

The tender for the same was floated by the energy exploration and production major last month. The report, citing a senior industry official, said the company is looking to contract a mix of drillships and semi-submersible rigs for a period of up to five years. The official added that ONGC wants the rigs mobilised within 80 days, underscoring its urgency to ramp up deep-water operations.

 

 

Zoom in

The move would be ONGC’s biggest hydrocarbon exploration programme. It comes as part of the Centre’s Samudra Manthan programme that aims to advance deep water exploration in India to enhance the country’s energy security.

 

The pre-bidding meeting for the tender was attended by major domestic and international drilling companies on March 20, the report added.

 

Last year, the company had also said that it had commenced drilling of an ultra-deepwater well in Andaman. “We believe eastern offshore of India hides untapped hydrocarbon potential and ONGC is on a mission to harness it,” it said.

 

What else

Earlier this year, it also floated a tender for a technical support partnership (TSP) with global oil majors for its blocks in the western offshore as a part of its efforts to boost production. Chevron, TotalEnergies, ExxonMobil, and Shell are among the interested players for the partnership. It also has a similar partnership with global oil major BP.

 

The backdrop

The latest tender comes amid an ongoing conflict in West Asia, a region that serves as a major energy supplier to India. The country depends heavily on imports for about 88 per cent of its crude oil needs, 60 per cent of its LPG requirements, and nearly half of its natural gas consumption.

 

Prime Minister Narendra Modi highlighted the energy security concerns in Parliament, saying the country is working to procure crude oil and gas from all available sources.

 

Bottom line

India’s push for deepwater exploration signals a strategic shift towards energy self-reliance in an increasingly volatile global environment.