Deep Driller-1 is lowest bidder in GSPC tender

Vol 13, PW 13 (03 Dec 09) Exploration & Production

At a GSPC board meeting to be held today (Thursday) one of the items on the agenda will be hiring Aban Offshore jack-up Deep Driller-1, which has emerged best bidder to start development drilling at the Deen Dayal gasfield in the offshore Krishna Godavari, beating off competition from six other rigs.

PETROWATCH learns GSPC is likely to offer Deep Driller-1 a â€کfirm contract’ of one year followed by two six-month extensions at GSPC’s discretion. Aban offered Deep Driller-1 at an effective day rate of $124,058, which includes a mobilisation fee of Rs10 lakh ($22,222).

GSPC wants the rig mobilised in January or February to start drilling right away, we hear. Drilling contractors say GSPC won Deep Driller-1 at a good rate.

“This is almost the same rate,â€‌ says a drilling contractor, “at which Atwood Beacon was working for GSPC from December 2006 to September 2009.â€‌ But for this current tender Atwood Beacon was offered to GSPC at $171,581/day.

Deep Driller-1’s rate is much higher than the $74,900/day rate at which ONGC hired jack-ups Noble Ed Holt and Trident-II last month (see above), each on three-year contracts. But a source explains you can’t compare the two tenders.

“Noble Ed Holt can work only in 300-feet water depths, has a BOP of 10,000-psi, and just two mud pumps,â€‌ we hear. “GSPC wanted a rig that can drill in 450-feet water depths, with a BOP of 15,000 psi and three high-powered mud pumps.

â€‌ GSPC initially invited bids for a three development well programme; drillers sent in bids but none were willing to accept a contract based solely on the number of wells to be drilled. All wanted a fixed term contract of at least one year.

In response, GSPC scrapped the tender and invited fresh bids for two, three and five-year contracts.