ONGC to Upgrade and Expand Onshore Rig Fleet

ONGC plans to invest approximately Rs 3,000 crore to expand and upgrade it existing onshore rig fleet. Subir Raha, Chairman, said ONGC is set to upgrade its rigs used for onshore operations, to improve their efficiency, at a cost of Rs 1,500 crore, spread over 4-5 years. Bharat Heavy Electricals will has been awarded the contract for the rig upgrades. Further, ONGC will also acquire 25 work-over rigs to add to its existing fleet of 50.

"The upgrade of these onshore rigs will not affect production. Its work has been scheduled over the next 4-5 years so that production is not impacted at any time. After completion of the upgrade, the efficiency of these rigs will improve significantly," Raha said.

ONGC is also planning to acquire a second survey vessel for about Rs 300 crore, in addition to purchase of high-tech equipment for putting in place an offshore crisis management team, at an additional cost of Rs 200 crore. "In the next season, we will be operating around 30 rigs in the shallow waters and two rigs in the deep water for exploratory work at a cost of $2 million a day. The challenge for us is in terms of management and planning," he said.