Jack Bates 'riser' row with ONGC

Vol 19, PW 23 (28 Jul 16) News in Brief

Transocean semisubmersible Jack Bates is scheduled to leave the Keppel FELS yard in Singapore next month to mobilise for a two-year ONGC contract drilling development wells at the Vashishta and S1 fields in the offshore KG basin.

But there might be a delay because we hear Transocean is yet to accept the LoA issued by ONGC on July 8 hiring the rig at $127,000/day. Transocean is concerned by ONGC's demand that it must provide an onboard riser used to pull out casing while drilling.

"Transocean says ONGC should pay for this," says a source. Another driller adds ONGC can only accept the rig after Transocean accepts the LoA.

"A riser and a motion compensator (which compensates for the vertical movement of the rig because of heaving waves) were within the scope of work of the tender won by Transocean," he says. Transocean has 180 days to mobilise the rig for ONGC from the date of award.

When ONGC opened price bids on May 17, Transocean bid lowest quoting $127,000/day against $156,000/day offered by Dynamic Drilling for Noble Max Smith.