Oil and Natural Gas Corporation (ONGC) is in preliminary talks with domestic shipyards to construct two offshore jack-up drilling rigs, estimated to cost USD 500-550 million.

The plan, recently approved by ONGC’s board, is aimed at replacing some of the company’s aging rigs, many of which have been operational for over 40 years. These older rigs are set to be retired in the coming years. The initiative is expected to benefit Indian shipyards by helping them acquire the expertise needed to manufacture advanced offshore rigs.

Currently, ONGC operates a fleet of 113 drilling rigs, which includes 38 offshore rigs, and has an additional 90 workover rigs. Of these, only about 20 percent of the offshore rigs are owned by the company, with the rest being chartered. In contrast, nearly 80 percent of onshore rigs are company-owned.

The plan, it materialises, could mark a significant step in revitalising India’s domestic shipbuilding industry while strengthening ONGC’s operational capacity.