Aban and Jagson likely to bid low in ONGC tender

Vol 17, PW 23 (03 Jul 14) Exploration & Production

Aban Offshore and Jagson Drilling are likely to emerge lowest bidders in ONGC’s 12-rig tender.

On June 19, ten bidders offered ONGC a choice of 28 rigs. It later received bid documents in paper format by June 26.

Not all the rigs will meet ONGC criteria. In Category-I, where ONGC wants eight rigs of Marathon Le Tourneau, Baker Marine Class or Levingston design, it received 12 offers.

Aban offered Aban-III and Aban-IV, already working for ONGC; Jagson offered Deepsea Treasure; Hallworthy offered Foresight Driller 9; Shelf Drilling offered Randolph Yost, Parameswara, and three rigs already working with ONGC: Trident-II, FG McClintock and CE Thornton; Deepwater Drilling offered two rigs from Noble spinoff Paragon Offshore: Noble Charlie Yester and Noble Ed Holt, already with ONGC and managed by Jindal Drilling as well as Valiant Driller. Jagson’s Treasure is likely to be rejected as she has been idle for more than three years.

ONGC might also reject Shelf’s Trident-II, McClintock and Thornton as they have more than 300 days remaining for their present contracts. “That leaves eight valid offers in Category-I exactly matching ONGC’s requirement,” says an industry source.

“Aban wants work in India,” says a source, “and will bid low.” Jagson is likely to be lowest bidder in Category-II where ONGC needs three Friede & Goldman design rigs but has received five offers.

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