Hallworthy refuses to cut rate for ONGC

Vol 18, PW 7 (20 Nov 14) News in Brief

Hallworthy Shipping is refusing to lower the day rate of its jack-up Foresight Driller 9 offered to ONGC in its 12-rig tender where price bids were opened on September 19.

Hallworthy told ONGC on November 5 that Foresight Driller 9 – presently drilling offshore Iran in the Persian Gulf for an unidentified Iranian company - is available but at the day rate at which she was offered in the ONGC tender: $99,500, excluding 12.36% Service Tax. On October 9 ONGC asked Hallworthy to match the $80,001 Effective Day Rate (EDR) it negotiated for lowest bidder Aban Offshore’s two rigs Aban-III and Aban-IV in Category-I.

Industry sources say it makes no sense for Hallworthy to reduce its rate so sharply for ONGC when it gets $145,000-$150,000/day for each of its three jack-ups drilling off Iran: Foresight Driller 3, 5 and 9. Foresight Driller 9 completed her three-year Iran contract in 2013 and has been working on extensions since then.

Hallworthy bought the rig in 2012.