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Home > All news > Business, Shipping > D G Shipping grants three year extension to drilling rig upgrade

D G Shipping grants three year extension to drilling rig upgrade

June 24, 2023
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MUMBAI : 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.

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