Oil and Natural Gas Corporation (ONGC) is in preliminary discussions with domestic shipyards to construct two offshore jack-up drilling rigs, estimated to cost between $500 million and $550 million, according to a senior executive from the state-run company.

The company’s board recently approved the proposal to build these offshore rigs. Om Prakash Singh, Director of Technology and Field Services at ONGC, explained that the new rigs are intended to replace some of the company’s older rigs, which have been operational for over four decades and are set to be retired in the coming years.

Singh also highlighted that this initiative would enable Indian shipyards to develop the expertise needed for manufacturing advanced offshore rigs. He noted that no offshore drilling rigs have been constructed in India since 1990, when local shipyards built two jack-up rigs and one floater for ONGC’s use.