Right time for ONGC to opt for new rigs: Experts

With the rental differential between old and new rigs disappearing, Oil and Natural Gas Corporation (ONGC) has an opportunity to improve efficiency and make the most of rising crude oil prices by modernising its rigs.

It is also a time when activity in the oil exploration and production business is subdued, due to output cuts by the Organization of The Petroleum Exporting Countries. Good quality rigs would be available at discounts. Four years earlier, when crude oil was $100 a barrel, rentals were $85,000 a day for old rigs and $119,000 a day for new ones. The latter are now $27,000