ONGC invites bids for five jack-up rigs

Vol 16, PW 4 (06 Sep 12) News in Brief

Even though drillers face no shortage of work they are expected to respond enthusiastically to five imminent ONGC rig tenders, because of the three-year contracts on offer.

“A long-term contract at the present high rates is attractive,” says a likely bidder. ONGC is holding a pre-bid in Mumbai this week to hire two Marathon LeTourneau cantilever jack-ups; one slot/cantilever rig; one rig to drill high pressure/high temperature wells to replace Greatdrill Chetna, hired by the PMT consortium in May; and one rig which can drill in 600-feet water depths to replace Aban Offshore’s Aban Ice, whose contract ends October.

Average day rates for these categories range from $85,000 to $295,000. ONGC hopes bidders will bid below market rates, but this is unlikely.

It sold tenders between August 10 and 30 and wants bids in by October 5. There’s a chance ONGC might revive its contract with Ice.

It hired Ice and Chetna at $156,000/day, against the current rate of $295,000/day.

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