Drillship price bloodbath expected

Vol 18, PW 25 (13 Aug 15) News in Brief

Expect rock-bottom rates in ONGC's tenders to hire five floaters needed at its prospective KG-DWN-98/2 block from April-June 2016.

On August 20, ONGC will receive bids to hire two dynamically positioned drillships which can drill in water depths of 1500 metres (4921 feet) for three years. Four days later on August 24, ONGC will accept bids to hire three anchor-moored semis which can drill in water depths of 762 metres (2500-feet) for three years.

An ONGC source says there is no chance of extending the bid deadline now as it has already been extended by more than a month. "Rock bottom rates of $250,000-300,000/day will be offered," says a driller.

"Gone are the days when you could ask $500,000/day for deepwater rigs." Transocean, Seadrill, Ensco, Aban Offshore, Deepwater Drilling and Atwood Oceanics are among the 20 companies expected to bid. Platinum Explorer, whose contract ends on December 27, 2015, was the last rig to win a $590,000/day contract from ONGC.