ONGC extends 1300-metre rig deadline

Vol 16, PW 12 (10 Jan 13) News in Brief

ONGC has extended the bid submission deadline in a tender to hire a rig that can drill in water depths of 1300 metres from January 4 to January 18.

Three drillers, who are all expected to bid, requested the extension because of the Christmas and New Year holidays: Transocean, Dynasty Oil from India and Open Stock Company from Russia. Transocean was sole bidder in the last incarnation of this tender when on October 17 last year it offered GSF Explorer at $601,000/day.

ONGC found the rate too high and, as Transocean was unwilling to reduce its rate below a point, scrapped and reissued the tender. New tender documents went on sale from December 11 to December 25 with a significant change: ONGC is now offering a three-year contract instead of the previous two-year term.

Transocean might offer GSF Explorer again but could face a strong challenge from Open Stock Company, likely to offer Deep Venture.