Jindal breaks with Noble to offer Rowan rigs

Vol 18, PW 22 (02 Jul 15) Exploration & Production

Here's evidence of how desperate drillers are for contracts in India.

In ONGC's tender to hire five jack-ups when bids were submitted on June 22, Jindal Drilling offered two Rowan Drilling rigs which are halfway around the world in the Gulf of Mexico. Yet everybody knows ONGC will most likely hire a rig already in Indian waters to save on mobilisation costs.

ONGC wants two independent leg cantilever jack-ups in Category-I and received six offers: Deepwater Drilling offered Paragon L-1111 (earlier called Noble Gus Androes); Hallworthy offered Foresight Driller-9; Jagson Drilling offered Deepsea Treasure; Jindal offered Cecil Provine which is in the Gulf of Mexico; and Shelf Drilling offered CE Thornton and FG McClintock, still with ONGC but which came off contract on May 1, 2015. In Category-II ONGC wants three slot/cantilever rigs and received eight offers: Aban Offshore offered Aban V, off Iran; China Oilfield Services offered Bohai-IV and Hysy-931; Jindal offered Rowan Louisiana which is in the Gulf of Mexico; GOL Offshore offered Kedarnath, which comes off its ONGC contract on November 28, 2015; and Shelf offered Parameswara, Randolph Yost, off Indonesia, and Trident-II which came off its ONGC contract on March 29, 2015.

Analysts say Category-I rates will be around $62,000-65,000/day, or 20% lower than the $82,000 Operating Day Rate ONGC paid after its 2014 tender.