ONGC Eyes Deepwater Drillship Acquisition to Power Samudra Manthan

⚡ Key Financial Takeaways

ONGC issued an EOI to acquire or jointly own deepwater drillships for Mission Samudra Manthan, targeting vessels rated for 1,500+ metres.

The two‑phase assignment will screen partners, benchmark costs, and negotiate ownership or JV terms, with a potential GIFT City SPV and mixed equity‑debt financing.

India’s 2030‑31 offshore scheme allocates Rs 84,084 crore, offering up to 50% support per well (capped at Rs 675 crore) for 60 deepwater exploration wells.

ONGC’s Push for Dedicated Deepwater Capacity ONGC has announced an Expression of Interest (EOI) to either purchase or jointly acquire deepwater drillships, a key step in its Mission Samudra Manthan programme. The initiative aims to secure dedicated, priority‑access rigs for India’s expanding offshore exploration push, reducing dependence on time‑chartered foreign vessels.

EOI Details and Phased Implementation The EOI outlines a two‑phase process. Phase 1, lasting three months, will identify, screen and shortlist potential drillship owners and contractors, establishing an indicative commercial basis for decision‑making. Phase 2, up to six months, will cover negotiation support, documentation, financing coordination and transaction closure, including bringing the rig into India. The consultant’s mandate covers day‑rate benchmarking, technical due diligence, and drafting a non‑binding term sheet covering equity split, governance, charter economics and sail‑in timelines.

Financing, GIFT City SPV and Strategic Impact ONGC plans to structure a GIFT City special purpose vehicle (SPV) to facilitate the transaction, exploring an equity‑debt mix and external commercial borrowing. This financial strategy aligns with the central‑sector scheme’s Rs 84,084‑crore outlay through 2030‑31, which offers up to 50% support per deepwater well (capped at Rs 675 crore). By owning or jointly controlling drillships, ONGC can accelerate drilling of the 60 planned deepwater wells, large‑scale seismic surveys, and the development of common offshore infrastructure under the scheme.