ONGC issues LoAs for Platinum and Louisiana

Vol 20, PW 20 (29 Jun 17) Exploration & Production

After weeks of uncertainty ONGC has finally concluded its much-delayed tender to hire two deepwater rigs for three years each to drill development wells at the KG-DWN-98/2 block on the east coast.

Vantage Drilling confirms to this report it received the LoA for drillship Platinum Explorer on June 22. "We are delighted to be returning to work for ONGC!" a company source tells us.

"(In the past) Platinum Explorer has provided a cost effective and industry leading performance for ONGC and we are looking forward to getting back to work and providing the same service." Also on June 22, ONGC issued a LoA for semi-submersible SSV Louisiana, owned by Brazilian driller Ventura Petroleo SA but offered to ONGC by Universal Energy. High drama preceded the LoA awards, reports a source.

On June 21, a day earlier, ONGC's Executive Purchase Committee (EPC) approved a proposal to invite Vantage and Universal to match the $108,599/day rate quoted by Seadrill which ranked L1 but pulled out of the tender where Vantage was L2 and Universal L3. "Vantage sent its confirmation by 1.30 pm the same day," reports an ONGC source.

"Universal's confirmation letter reached ONGC around 5.30pm, also the same day." Vantage Drilling announced its LoA on June 27. "Platinum Explorer is planned to mobilise to India in the fourth quarter of 2017," said the company.

"Expected revenues over the three-year contract term, exclusive of service tax, are approximately $118 million."

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