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ONGC plans $20 billion deep-water drilling push to boost energy security

India | March 29, 2026
Federal Reserve Building

India's state-owned Oil and Natural Gas Corp (ONGC) is preparing a $18-20 billion investment to secure deep-water drilling rigs for an ambitious exploration drive, marking its largest such programme to date under the government's Samudra Manthan initiative.

State-run Oil and Natural Gas Corp (ONGC) has initiated a tender process to secure deep-water drilling rigs in what is set to become the company's largest exploration programme to date. According to official disclosures, the tender, floated in February, seeks a combination of drill ships and semi-submersible rigs for contract terms extending up to five years, with an estimated investment of $18-20 billion.

A pre-bid meeting held in Mumbai on March 20 drew participation from a dozen domestic and international offshore drilling contractors. The urgency of the programme is underscored by a stipulation requiring rig mobilisation within 80 days. ONGC is concurrently advancing ultra-deep-water drilling in the Andaman region while pursuing strategic collaborations with international energy majors including BP, ExxonMobil, TotalEnergies, and Petrobras to mitigate exploration risks in high-cost frontier basins. The exploration push aligns with the government's Samudra Manthan mission, which prioritises domestic hydrocarbon development to reduce import dependence.

For global offshore drilling contractors, the tender represents a significant multi-year opportunity in a market where deep-water capacity is increasingly constrained. Success in this programme could reshape India's upstream energy landscape while positioning ONGC as a more prominent deep-water operator alongside its international partners.

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#ONGC #deep-water drilling #oil exploration #Samudra Manthan #exploration project #tenders

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