Oil India rig bids

Vol 15, PW 18 (22 Mar 12) News in Brief

Six onland drillers are expected to submit bids to Oil India on March 28 in a tender to hire two 2000-hp rigs for two ‘firm’ years plus a one-year ‘optional’ extension.

Oil India originally wanted bids in by February 2, extended to February 22, and again postponed to March 28, because of requests by JayBee and other likely bidders. Shiv Vani continues to be tipped as the frontrunner, as Oil India needs the rigs in north-eastern India.

Shiv Vani already has two 2000-hp rigs working for Oil India on three-year contracts expected to end soon. Punj Lloyd is also expected to bid aggressively.

“Punj’s rigs are sitting idle in Libya. It wants to bring them to India and Oil India’s tender is a good opportunity.

” Oil India can expect quotes ranging from $20,000 to $22,000/day. “Rates might go up by another two to three thousand dollars if diesel prices rise,” we hear.

Shiv Vani could bid low as it has recovered 60% of its capital costs on its rigs. Quippo, Black Pearl, and John Energy might also bid.