Relief as ONGC extends 10-rig bid deadline

Vol 16, PW 11 (13 Dec 12) Exploration & Production

Time is money when you’re preparing to bid in ONGC’s biggest rig tender of recent times.

So drillers were pleasantly surprised when on December 3 ONGC faxed them that it was extending the bid submission deadline in its 10 jack-up tender from December 5 to December 19. ONGC’s extension follows requests by Transocean, Shiv Vani and others.

Expect serious competition between Transocean, Jindal Drilling, Jagson Drilling, Greatship and Aban Offshore. Nearly 30 companies bought bid documents by November 13.

Most attention is on Delhi-based Jagson, expected to quote a low rate to win a contract for newly bought Deepsea Treasure, formerly Pride Hawaii. “I don’t think Jagson will quote below $90,000/day,” we hear.

“It won’t do charity; Jagson knows global rates are high and that ONGC has no choice.” Another company to watch is UAE-based newcomer Hallworthy International, expected to offer Brazilian-built, Levingston-design rig Kamose, owned by Egyptian Drilling and ready stacked off Egypt.

Any attempt by Jagson or Hallworthy to undercut the market will be firmly resisted by Transocean, likely to offer Trident XII, Ron Tappmeyer and Randolph Yost. “ONGC scrapped a tender for two Marathon LeTourneau jack-ups this year,” recalls a source, “because Transocean wouldn’t go below $140,000/day.

” Transocean is likely to remain firm here too as it knows rigs are getting better rates overseas. Trident XII comes off its current ONGC contract in May 2013 and Ron Tappmeyer’s contract ends in June.

Randolph Yost is cold-stacked at Pipavav in Gujarat.