India's state-controlled Oil & Natural Gas Corporation (ONGC) has launched a significant and unexpected tender to charter up to five specialized deepwater drilling rigs, marking one of its largest chartering exercises in recent years. This initiative is part of the Indian government's "Samudra Manthan" drilling program and supports ONGC's aggressive deepwater exploration and development plans, which include drilling multiple offshore wells.

Tender Details and Rig Specifications

The tender, issued in February, calls for bids on five rigs across three distinct categories for a firm four-year term, with a likely one-year extension—a tenure considered highly lucrative for the offshore drilling sector. The specific requirements are:

• Three dynamically positioned deepwater drillships capable of operating in water depths up to 3000 meters.
• One anchor-moored floater rig for operations in water depths up to 600 meters.
• One dynamically positioned semisubmersible rig for water depths up to 1500 meters.

Industry sources describe this as a "massive" and unprecedented chartering exercise in South Asia.

Drilling Program and Deployment

The rigs are intended to drill multiple exploration, re-entry completion, and stratigraphic wells primarily offshore India's eastern coast. However, an internal document states the rigs can be deployed to any ONGC, Oil India Limited (OIL), or Government of India block in Indian waters if plans change. The actual drilling operations will follow the operator's specific well drilling and completion programs.

Industry Context and Reaction

The tender has surprised the offshore drilling industry, with one source noting it "comes out of the blue." Industry executives confirm the scale and unexpected nature of the tender. Transocean's CEO noted the tender is for three drillships and two semi-submersibles, with contracts starting in the first half of 2027, aligning with the Indian government's objective to drill 50 deepwater wells annually. A Transocean executive highlighted the tender represents "20 to 25 rig years in one go," a significant commitment not previously anticipated. Given the tightening global deepwater drilling market, securing these units on long-term charter is expected to be costly for ONGC.

Recent Contract Award

In a related development, Vantage Drilling recently secured a three-year contract from ONGC for its drillship Platinum Explorer. This award, following a separate tender, is for a drillship capable of operating in up to 3000 meters of water, targeting exploration and other wells, including in the challenging ultra-deepwater regions of the Cauvery and Andaman basins.