Cairn rig tender

Vol 15, PW 10 (17 Nov 11) News in Brief
     

Cairn India is preparing to hire an onland drilling rig and allied ‘cementing,’ ‘mud-logging’ and ‘wireline’ services for its Rajasthan oilfields.

PETROWATCH learns Cairn received bids in early October from Weatherford, Quippo Oil & Gas, John Energy and Essar Oilfield Services, after they attended a pre-bid in the last week of September. Cairn, we learn, is likely to award the rig contract by end-November and wants the contractor to drill 84 wells over 30 months.

Cairn’s Mangala and other fields at RJ-ON-90/1 were producing about 125,000 b/d in August this year and Cairn hopes to raise production to 240,000 b/d. Weatherford already has two rigs (806 and 807) on hire to Cairn on three-year contracts expected to end by December.

Cairn has the ‘option’ to extend these contracts twice, by a year each time. Analysts interpret Cairn’s decision to float a fresh rig tender to mean it doesn’t want to exercise this option and wants to release at least one of the Weatherford rigs.