Reliance confirms it wants DD-KG1 back

Vol 16, PW 17 (21 Mar 13) News in Brief

After several doubts, it now appears certain Reliance will take back Transocean-owned deepwater drillship Dhirubhai Deepwater KG 1 (DD-KG1) after her sub-let contract to ONGC ends in July.

DD-KG1 is currently drilling for ONGC in the KG basin offshore Vijaywada. Last year ONGC wanted to keep DD-KG1 for another six months with a six-month option but it no longer wants to extend the contract.

“Reliance says it will gladly take the rig back in July for the remaining one year of her term,” says an oilfield services provider. DD-KG1 was hired by Reliance for five years from July 2009 at an Operating Day Rate of $563,488.

She has not drilled a single well for Reliance as ONGC controversially sub-contracted her immediately for four years without a tender, deploying her offshore the Kerala Konkan region where she spud her first well in India. Audit watchdog Comptroller and Auditor General of India accused ONGC of favouring Reliance with the deal.