Reliance to release DD-KG1
Reliance and BP are ready to release Transocean deepwater drillship Dhirubhai Deepwater KG1 (DD-KG1) when her contract ends in July 2014, according to industry sources.
The reason, they say, is because of a lack of deepwater exploration drilling activity over the next two years. Reliance has two drillships in Indian waters, DD-KG1 and DD-KG2, with a third - Discoverer India - sublet to Chevron till September 2016, when she returns to Reliance until November 2020.
“Each of these rigs can drill six exploration wells a year," says a driller. "I don't see such a big Reliance drilling programme down the line.
” Besides KG-D6, Reliance's only other promising deepwater site is CY-DWN-2001/2, where it announced a gas condensate discovery on August 23. “Appraisal work and approvals will take two years and development drilling will begin after.
It makes sense to release DD-KG1 and rehire only DD-KG2 when her contract ends in February 2015.”