ONGC floats $20 billion global tender for deepwater rigs

Mumbai: Oil and Natural Gas Corp is likely to spend as much as $18-20 billion to hire deep-water drilling rigs for what would be its biggest ever oil exploration programme, people familiar with the matter said.

ONGC last month issued a tender for the rigs, as the state-run company seeks to step up hydrocarbon exploration as part of the government's Samudra Manthan mission that aims to boost the country's energy security. A dozen domestic and international drilling companies attended a pre-bid meeting that ONGC held in Mumbai on March 20, the people said.

"The tender seeks a mix of drill ships and semi-submersible rigs for up to five years. This programme will cost ONGC around $18-20 billion," said a senior industry official whose company participated in the pre-bid meeting. "ONGC is seeking mobilisation of the rigs within 80 days, which highlights ONGC's urgency to scale up deep-water activity," he said .

ONGC did not respond to an email seeking comment till press time Tuesday. In addition to working on the KG Basin block off the east coast, ONGC has also commenced ultra-deep-water drilling operations in the Andamans. It is also pursuing deep-water collaborations with energy companies including BP, EXxonMobil, Total Energies and Petrobras as part of a strategic initiative to mitigate risks associated with exploration in high-cost frontier regions. The tender floated in February seeks bids from experienced offshore drilling contractors under an international competitive bidding process.