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DG Shipping grants three-year extension to drilling rig upgrade

The relaxation follows strong lobbying from the stakeholders, oil field operators including ONGC – India’s biggest oil and gas explorer – and intervention from the Ministry of Petroleum and Natural Gas.
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The Directorate General of Shipping has granted a three-year relaxation in the timeline on implementing rules framed in 2022 for upgrading mobile offshore drilling units or MODUs certified under the 1979 MODU Code to the 1989 Code within two years or by October 2024.

India’s maritime regulator has now set an October 2027 timeframe for completing the upgradation process.

The relaxation follows strong lobbying from the stakeholders, oil field operators including ONGC – India’s biggest oil and gas explorer – and intervention from the Ministry of Petroleum and Natural Gas.

The Code for the Construction and Equipment of Mobile Offshore Drilling Units adopted by the International Maritime Organisation (IMO) provides an international standard for MODUs, which are covered under three Codes (1979, 1989 and 2009), depending on the date of construction

In an amendment issued to the 20 October 2022 order on the matter, the D G Shipping has now prescribed a specific time frame for “progressive implementation” of the upgradation, according to the amendment order issued on 21 June.

On completing the progressive implementation schedule set out by the D G Shipping on the up gradation, the offshore drilling rigs shall hold a valid MODU safety certificate per the 1989 MODU Code or higher before 31 October 2027.

The relaxation is applicable only to self-elevating types of drilling units operating in Indian waters, certified under the MODU Code. The relaxation applies to existing drilling rigs operating in Indian waters, as well as those drilling rigs participating in tenders and being awarded the contract by 30 June 2024.

According to the 2022 order, existing Mobile Offshore Drilling Units (propelled/non-propelled) under Indian registry shall comply with the requirements of MODU Code, 1979, 1989 or 2009, depending on the year of construction/modification.

Such MODUs certified as per the 1979 MODU Code shall upgrade and obtain certification under the MODU Code 1989 within 2 years from the date of the order.

Besides, foreign flag MODUs certified as per the 1979 MODU Code, working in Indian waters shall upgrade and obtain certification under the MODU Code 1989 within two years from the date of the order.

Further, any MODU (propelled/non-propelled/India or foreign flag) participating in a tender, after the order, shall comply with the requirements of MODU Code 1989 or 2009 depending on the year of construction/modification, the D G Shipping had stipulated.

The D G Shipping order on certification of offshore vessels and accommodation barges operating in Indian exclusive economic zones, was issued to bolster offshore safety after the May 2021 mishap (P305) at Mumbai High Oil Fields caused by Cyclone Tauktae that left more than 70 dead.

India’s maritime regulator said that it received representations from stakeholders to extend the timeline on upgrading the existing MODU’s in the backdrop of limited availability of drilling rigs certified under MODU Code 1989 or higher. “Considering the submissions from the stakeholders, oil field operators including ONGC and a letter from the Ministry of Petroleum and Natural Gas (MoPNG) dated 7 April 2023, and their merit, in order to avoid any disruptive effect on the trade and oil/gas production commitment of the country due to required demobilisation of the rigs from production location, the Competent Authority has agreed to grant relaxation in the timeline stipulated towards compliance of the D G Shipping Order of October 2022 and prescribe specific timeframe towards progressive implementation of the Order,” Rajiv Jalota, Director General of Shipping, wrote in the 21 June amendment order.

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