BG receives 11 rig offers for Tapti

Vol 19, PW 21 (30 Jun 16) News in Brief

BG has received 11 rig offers in its tender to hire one jack-up needed to abandon Tapti wells offshore Mumbai.

On the June 7 bid deadline, Shelf Drilling offered Compact Driller, Galveston Key and Key Singapore; Aban Offshore offered Deep Driller 3, Deep Driller 5, Deep Driller 8 and Aban-VIII; Dynamic Drilling offered Paragon L784; Greatship offered Greatdrill Chitra; and Vantage Drilling offered Topaz Driller. Seadrill also offered a rig but the name is not known.

Still unclear is when price bids will be opened. However, rates quoted for BG are usually 20% higher than for ONGC.

"BG has higher safety and other operational parameters," says a source. "They also require an extensive training programme so these costs are factored in and they add up to 20% more than for ONGC." Many expect the winning day rate to be around $75,000.

BG's abandonment programme consists of the rig opening and then 'killing' the wells. Confusingly it has asked bidders to quote for four different options for contract duration with little clarity on which one it will choose.

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