Reliance has no use for Discoverer

Vol 19, PW 26 (08 Sep 16) News in Brief

Reliance's sub-let contract with Chevron for deepwater drillship Discoverer India ends on September 17 (this month).

But Reliance has no plans to bring the rig, currently in the Gulf of Mexico, back to India. "Reliance has no immediate drilling plans," reports a source.

"The earliest it will begin drilling is 2018 when it plans eight development wells at its R-Series discoveries (60-km south of the D1 and D3 fields)." Reliance hired Discoverer from Transocean for 10 years but sub-let it to Chevron for five years at $557,000/day and is now in talks with Transocean about how to use the rig for the remaining five years. Transocean's fleet report released in July (2016) says Reliance will pay $458,250/day if oil remains less than $50/barrel and a ceiling of $558,250/day if oil is over $100/barrel.

Meanwhile, Transocean drillship DD-KG2 will soon complete sidetrack well KG D6 MA-4H at the MA oilfield in water depths of 1192 metres. Drilled to 5190 metres by September 2, the well will be completed to 5200 metres.

Then Reliance will sidetrack another well and release DD-KG2.

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