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 India's east and west coasts. The rigs must be of MLT or BMC design and capable of operating in water depths up to 300 feet.

Contract Details and Market Context

Each rig will be hired on a three-year term, and ONGC aims to mobilize them within 180 days of contract award. Bids are expected to be submitted on December 8, with contractor selection anticipated by early next year. The global jack-up market is showing signs of recovery, and several leading domestic and international rig contractors are expected to compete. This tender follows a period of market volatility; ONGC canceled two tender processes for about seven rigs last year after unsuccessful pricing negotiations, leaving multiple domestic rigs idling. However, earlier this year, ONGC awarded contracts for four jack-up rigs, including to Shelf Drilling, which secured a three-year, $40 million contract for the JT Angel rig to operate at Mumbai High starting October 2025. These awards were part of a previous tender that saw exceptionally low dayrates.

Strategic Capex and Production Goals

This rig chartering effort is supported by a significant capital expenditure target of $4.3 billion for the 2025-2026 financial year, with a substantial portion allocated to development and exploration drilling. As the operator of the largest jack-up fleet in South Asia and the company responsible for almost three-quarters of India's crude output, ONGC is aggressively pursuing exploration and development projects. Its strategy involves maintaining production from major west coast fields, developing new deepwater assets on the east coast, and expanding its domestic exploration portfolio. The long-term goal is to significantly boost domestic oil and gas production and scale up its exploration area to around 500,000 square kilometres to meet India's rapidly growing energy demand.