Seadrill lowest bidder in 98/2 drillship race

Vol 20, PW 12 (09 Mar 17) Exploration & Production

After two years trying, Norwegian driller Seadrill Offshore is poised to win its first deepwater drillship contract from ONGC.

When ONGC opened price bids on February 27, Seadrill bid lowest in an ONGC tender for two deepwater drillships to drill in water depths of 1500 metres at KG-DWN-98/2. Seadrill quoted $108,599 ODR for Sevan Driller or $134,918.04 EDR without service tax.

Ranked second was Vantage Drilling, which has re-entered the Indian market, offering Platinum Explorer at $112,680 ODR and $145,939.64 EDR without service tax. Platinum is ready-stacked since coming off her last ONGC contract from December 2010 to December 2015 at a $585,000 EDR.

Still unclear is whether Vantage can match Seadrill's price. "In this climate," says a driller, "nobody will want to lose a three-year contract over $4000/day.

I think Vantage will match Seadrill's price." Universal Energy ranked third with $120,000 ODR and $146,062.60 EDR for SSV Louisiana. Transocean, the most experienced deepwater driller working in India, misjudged the market and ranked sixth after Drillship Kythnos ranked fourth and Queiroz Galvao Oleo Gas (QGOG) ranked fifth.

Transocean offered Deepwater Millennium, Discoverer India and Discoverer Luanda, each at a $145,000 ODR and $166,750 EDR without Service Tax. A driller adds ONGC opened price bids of only eight of the total 14 rigs originally offered when the tender closed on December 20, 2016, as the others didn't confirm availability.