Transocean rigs

Vol 15, PW 14 (26 Jan 12) News in Brief

ONGC has revived its lapsed contracts with Transocean for jack-ups CE Thornton and FG McClintock, sitting idle at the Goa Shipyard since their previous contracts ended last October and November respectively.

Both rigs will now be working once again for ONGC at its Mumbai offshore fields for another three years, each at $87,350/day. Transocean must mobilise both rigs by May 16 or within 120 days of ONGC’s Letter of Intent, dated January 16.

When ONGC opened price bids on October 19 in its tender for two Marathon Le Tourneau rigs, it discovered sole bidder Transocean had offered each rig at $91,346/day. ONGC refused to pay this high rate, as it had only recently hired two Aban Offshore jack-ups at $72,271/day each.

Transocean held its ground, leading ONGC’s four-member negotiating team to try for $82,000/day, before both companies finally agreed on $87,350/day. Thornton, built in 1974, and 1975-built McClintock previously worked for ONGC at $139,952/day.