Transocean obvious winner in Reliance rig tender

Vol 17, PW 24 (17 Jul 14) Exploration & Production
     

Transocean is believed to have offered DD-KG2 in a Reliance tender to hire a deepwater drillship for four years, giving it a clear edge over rival bidders Ensco and Noble Drilling.

Reliance issued the tender on June 11 and received bids on July 15 for a drillship to drill in waters of around 2300 metres (7500 feet) depth. DD-KG2 is already with Reliance, about to workover well MA-3H at the MA oilfield within the KG-D6 licence, at an Operating Day Rate (ODR) of $510,000.

"Reliance wants the rig mobilised between June and August 2015," says a driller. "DD-KG2's contract ends in March next year (2015) so it makes sense for Transocean to offer the rig and avoid mobilisation and demobilisation costs.

" Ensco and Noble Drilling, it seems, offered ‘new-build’ drillships. Reliance is offering a two-year contract with four ‘optional’ six month extensions for a drilling programme that could see up to eight wells.

"These will be mostly appraisal and development wells at KG-D6," says a source. "One appraisal well is planned at the MJ gas area at KG-D6.

" Reliance also plans appraisal wells at Cauvery gas discovery block CY-DWN-2001/2 to appraise the CYIII-D5-S1 gas and condensate discovery announced in August 2013. Also planned is drilling at the KG-DWN-2003/1 block, where four wells already drilled from a six-well commitment have resulted in discoveries.