India oil and gas rigs market was valued at USD5,665.34 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.29%, owing to a rapidly increasing investment in the untapped hydrocarbon reserves in the country. A rig is a structure above an oil well on land or in the sea with special equipment attached to it for drilling and removing oil from the ground. Rigs can be segmented into land rigs, Jackup, drill ships, semi-submersibles, etc. The growth of the Indian oil and gas market is anticipated to accelerate over the projected period due to rising natural gas production and plans to enhance oil production in the country. 

Upcoming Projects and Rising Consumption Demand of Oil and Gas Drive the Market Grow

The India offshore rig market is one of the most active global markets, with about 100% utilization, high day rates, and the possibility of more jack-up and floater contracts in the upcoming year. Since an offshore one, including shallow and Deepwater blocks, was completed in February, some robust acreage options are still available. The nation's Oil & Natural Gas Commission (ONGC) has discovered 130 more Deepwater projects, due to which the market is likely to grow with a high CAGR in the forecast period.

India is now one of the world's largest importers of petroleum and natural gas due to the country's rising oil consumption. The government is focusing on raising domestic oil and gas production to decrease the nation's dependence on imports of fossil fuels. For instance, India's oil demand is projected to jump 8.2% to 5.15 million barrels per day in 2022 as the Indian economy continues to rebound from the damage caused by the pandemic. Due to this, 13 licenses have production-sharing agreements signed by ONGC, including four in partnership with Oil India Limited (OIL) and Indian Oil Corporation Limited and nine as the sole operator (IOC). Since now the government is focusing on the natural gas and oil resource in India, the market is further expected to grow. 

A surge in natural gas production and a lift for the expansion of the oil and gas upstream market are possible alternatives to the significant potential for gas hydrates in the KG Basin. For the market players, sustainable production can also present an opportunity. 

Latest Developments in the oil and gas sector 

Companies in the private sector that NELP-III has awarded licenses include Jubilant Enpro, Hardy Exploration & Production, Reliance Energy, and Hardy Exploration & Production. In next licensing rounds, more Deepwater areas might be made accessible. Around India's southernmost point and east coast, the Directorate General of Hydrocarbons (DGH) has delineated more than 130 deepwater plays due to which market is expected to expand. For instance, in 2018, offshore production made around 49.2% of the oil produced and 71.9% of the gas produced in India. India has 26 sedimentary basins. 

Nowadays, the IoT is used by the oil and gas sector to enhance output, optimize machinery, guarantee worker safety, and keep an eye on remote places. Real-time data collection is made possible by sensors installed inside blowout preventers (BOP), choke valves, and wells. O&G startups use this data to swiftly identify defective equipment, assisting field engineers in foreseeing and responding to situations. Adopting IoT sensors may help increase market size in 2018-2028. 

The exploration and production policies have been changed, leading to modest industry development. Companies are concerned since changes might make the process easier. To attract the elusive private and international funding to boost domestic output, the government decided to redesign oil and gas exploration licenses and not charge any share of profit on hydrocarbons generated from less explored regions in 2019.