Essar jack-ups

Vol 15, PW 4 (25 Aug 11) News in Brief

Essar Oilfield Services is hunting for overseas contracts for two 350-feet jack ups under construction at the ABG Shipyard in Gujarat.

PETROWATCH learns Essar is confident it can secure contracts for both rigs in the next six months. “We are marketing both rigs to operators in countries like Indonesia, Singapore and Vietnam,” confirms a senior Essar source.

“We cannot offer them to ONGC because ONGC only accepts rigs from shipyards that have built jack-ups before. Ours will be the first offshore rigs built at ABG.

” Essar expects to earn anything from $135,000/day to $185,000/day for its ‘new generation’ Friede & Goldman rigs, commissioned from ABG in 2008 for approximately $440m. Both were originally meant for January 2011 delivery, but ABG blames delay on the “non-availability of critical rig-building equipment,” which it plans to install by December 2011, before sea trials.

ABG expects to deliver the first rig in April 2012 and the second six months later.