ONGC Plots $600 Million Marine Logistics Revolution

Oil and Natural Gas Corporation (ONGC) is planning a major overhaul of its western offshore logistics operations by outsourcing the entire supply chain to a single integrated service provider, replacing its existing multi-vendor system that currently costs around $600 million annually.

Calling the move a strategic transformation, ONGC Director (Production) Pankaj Kumar said the company wants to concentrate on its core exploration and production business while assigning logistics and support operations to specialised operators.

As part of the initiative, ONGC has issued an Expression of Interest (EoI) to identify a partner capable of delivering end-to-end marine logistics, fleet management, and shore base services for its western offshore assets.

The western offshore network — including Mumbai High, Bassein & Satellite (B&S), and Neelam-Heera fields — is among India’s largest offshore oil and gas producing regions, supported by supply bases at Nhava Sheva and Pipavav ports and servicing 68 offshore installations such as rigs, platforms, FPSOs, and mobile offshore units.

Currently, ONGC manages a large marine fleet comprising offshore support vessels, platform supply vessels, and anchor handling tug supply vessels, overseeing substantial monthly cargo, fuel, water, and equipment movement operations.

Under the proposed model, the selected contractor will handle warehousing, cargo transportation, customs coordination, reverse logistics, vessel scheduling, and operation of critical infrastructure including weighbridges, cargo scanners, and bulk handling systems across offshore assets.

ONGC clarified that strategic procurement functions, including rig hiring, will continue to remain under the company’s direct control.

The proposed contract is expected to span 3–5 years, with ONGC indicating that a longer tenure would be necessary to attract major global logistics players and ensure operational efficiency.

Industry experts have largely welcomed the move, viewing it as a step toward cost optimisation and alignment with international offshore logistics practices, although some stakeholders have recommended a phased implementation approach.

According to ONGC, the initiative is aimed at improving the reliability, efficiency, and safety of offshore logistics operations to support uninterrupted exploration and production activities that are vital to India’s energy security.

News by Rahul Yelligetti.