Excellent response to ONGC deepwater rig tender

Vol 18, PW 5 (23 Oct 14) Exploration & Production

ONGC has received an excellent response to its EoI notice on October 14 for a deepwater rig.

PETROWATCH learns five contractors offered six rigs by the October 20 deadline. Transocean offered GSF Explorer; Russian driller Open Joint Stock Company Arktikmorneftegazrazvedka (AMNGR) offered Deep Venture; Jindal Drilling offered Jasper Explorer; Deepwater Drilling offered Noble Paul Wolff and Paragon DPDS1 from Paragon Offshore.

UK-based Seadrill Offshore also sent in an EoI but declined to share the name of the rig offered to ONGC, when contacted. ONGC wants the rig to drill four wells in water depths of 400 metres at the Northern Discovery Area (NDA) of its showcase KG-DWN-98/2 discovery block off the Andhra coast.

Three established NDA wells will be re-entered and tested and a new well drilled in water depths of 400-700 metres to 3500 metres TD. Some believe Transocean is best-placed to win the contract as GSF Explorer was already drilling for ONGC on the east coast under a $411,000 ODR contract which ended in the first week of this month (October).

"ONGC wants to begin drilling by mid-December," we hear. "Transocean won’t have to pay mobilisation or demobilisation costs.

Other drillers must pay these costs which could rise to $10m depending on rig location. That cost will reflect in the rate it offers to ONGC.