Indian state-run Oil and Natural Gas Corporation plans to expand its capital spending by a fifth to $5.6 billion.

Oil services firms scramble for India

MUMBAI, July 9, 2015 – Indian state-run Oil and Natural Gas Corporation plans to expand its capital spending by a fifth to $5.6 billion. This move has attracted bidders for contracts in the country during a time when the global trend is to cut exploration and production spending.

Oil and Natural Gas Corporation was met with 26 bidders after holding a public tender for 20 offshore services vessels. The state-owned firm is able to offer these vessels for $14,000 a day, compared the $20,000 per day rate in 2014.

Some of the companies that won bids in recent oil services tenders are offshore drilling company Transocean, oilfield services firm SapuraKencana Petroleum, Indian conglomerate Larsen & Toubro and offshore services company Swiber Holdings.

The Indian government’s increased spending is part of efforts by the Modi administration to decrease India’s dependence on imports for its energy needs. The government is also looking to boost its local energy in an attempt to solve its current account deficits.

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