Cynics question ONGC rig tender

Vol 20, PW 8 (12 Jan 17) News in Brief
     

Many are openly asking if ONGC's 'replacement tender' for two rigs issued last month will lead to any awards.

On January 2, Japan Drilling Company offered Naga 1 and Aban Offshore offered Aban Ice to ONGC in the 600-feet category where it needs one rig; in the 1000-feet category where ONGC also needs one rig, Japan Drilling offered Hakuryu-5 and Saipem offered Scarabeo 6. ONGC issued this tender on December 2 because it wasn't sure Essar Wildcat hired from Essar Oilfield Services and Badrinath hired from GOL Offshore would mobilise on time.

Essar had till January 10 to mobilise and GOL has until February. "ONGC accepted fresh bids just to see what rigs are available," we hear.

Transocean, Dynamic Drilling and others wisely stayed away. "Preparing a bid costs $20,000 to $30,000," says a driller.

"ONGC will scrap the tender if Wildcat and Badrinath are mobilised before the award. We didn't see any point bidding." ONGC is likely to take a month to evaluate bids and wants rigs mobilised within 90 days.