India's state-controlled Oil & Natural Gas Corporation (ONGC) has initiated an international tender to charter up to four specialized cantilever-type jack-up drilling rigs for operations off the country's east and west coasts. The rigs must be of MLT or BMC design and capable of operating in water depths of up to 300 feet.

Contract Details and Market Context

Each rig will be hired on a three-year term, with bids due on December 8th. ONGC aims to select contractors by early next year and mobilize the rigs within 180 days of contract award. The global jack-up market is showing signs of recovery, and several leading domestic and international contractors are expected to compete. This tender follows a period of market volatility; ONGC canceled two tenders for about seven rigs last year after unsuccessful pricing negotiations but awarded contracts for four jack-ups earlier this year, including one to Shelf Drilling for its JT Angel rig to operate at Mumbai High starting October 2025.

Strategic Capex and Production Goals

The rig chartering is part of ONGC's broader capital expenditure strategy, with a target of $4.3 billion set for the 2025-2026 financial year. A significant portion of this capex is allocated to development and exploration drilling, driving the increased requirement for drilling units. As the company responsible for almost three-quarters of India's crude oil output, ONGC is implementing aggressive exploration and development plans to meet the country's rapid energy demand growth. These plans include maintaining production from major west coast fields, developing new deepwater assets on the east coast, and expanding its domestic exploration portfolio, with a long-term goal to scale its exploration area to around 500,000 square kilometres.