DD-KG2 delayed

Vol 15, PW 13 (12 Jan 12) News in Brief

Transocean-owned deepwater drillship DD-KG2 will not be returning to India in January as originally expected.

DD-KG2 is at present sitting idle offshore Johor Bahru in southern Malaysia since December 8, after drilling two dry wells off Brunei for Petronas. But Reliance does not want this rig back in Indian waters for at least another three months until it finalises drilling locations at D6, where gas production is fast declining.

Last week, the oil ministry approved Reliance’s $1.5bn development plan to drill 15 wells at its D6 'satellite' fields in water depths from 600 metres to 2000 metres. “But getting drilling locations technically approved and completing other formalities will take time,” says a source.

Reliance hired DD-KG2 in March 2010 for five years at $510,000/day and sub-let her last September to Malaysia’s Petronas Carigali Brunei, as a temporary replacement for Transocean-owned rig Deepwater Expedition, which needed urgent repairs to its Blow out Preventer (BoP).