Aban scares competition in ONGC jack-up race

Vol 19, PW 1 (10 Sep 15) Exploration & Production
     

Aban Offshore has intimidated rivals with an aggressive offer of four jack-ups to ONGC in a tender for a single high-spec rig.

“Aban looks like it is desperate for work,” says a driller. “I hear Aban is having payment problems with five rigs it has in Iran.

” One of them, Aban-VIII, was offered to ONGC by the August 18 deadline in addition to Deep Driller 8, Deep Driller 3 and Deep Driller 5. "Deep Driller 5 is idling in Vietnam since a year," we hear.

"Deep Driller 8 is coming off its contract in Brunei this month.” Given the industry slowdown worldwide, rivals fear Aban has quoted rock-bottom rates.

Also competing is Shelf Drilling, which operates old jack-ups formerly owned by Transocean. Shelf surprised the market by offering Seadrill-owned West Triton, built in 2008.

Other bidders are Hallworthy Shipping offering Vivekananda-1 and Vivekananda-2; Jindal offered Jindal Pioneer and Jindal Explorer; Greatship offering Greatdrill Chitra; Dynasty Oil and Gas offering Dynamic Momentum and China Oilfield Services offering COSL Gift. ONGC is expected to complete evaluation of technical bids this month.

Expect price bids around $80-90,000/day. ONGC issued the tender on July 28 for a single high spec jack-up built after April 1, 2004.

Other Aban rigs in Iran are Aban VI, Deep Driller 2, Deep Driller 4 and Deep Driller 6.

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