Great Eastern and Transocean share Category-IV

Vol 8, PW 10 (11 Aug 04) Exploration & Production
     

ONGC was looking for two slot rigs in Category-IV and received four offers: Kedarnath (Great Eastern), CE Thornton (Transocean), Atwood Beacon (Atwood Oceanics) and Perro Negro 5 (Saipem).

ONGC found them all technically suitable and opened price bids of each. Bids for ONGCs Category-IV tender for two slot rigs CE Thornton Kedarnath Perro Negro 5 Atwood Beacon Operating day rate $45,000 $49,200 $45,624 $92,000 Non-operating day rate $42,750 $46,750 $41,518 $87,400 Moving day rate $30,000 $45,978 $41,518 $87,400 Equipment breakdown day rate $20,000 None $40,605 $87,400 Mobilisation fee $500,000 None $3m $1.5m Demobilisation fee None None None None Value $52.5m $15m $35m $110m Transocean was the lowest and should have been L1.

But instead Great Eastern is L1 even though its offer is higher. Great Eastern is an Indian company and - according to ONGC policy will get 10% price preference over any foreign competitor.

Even without the price preference, it would have been a close finish because unlike Transocean, Great Eastern has quoted no equipment breakdown day rate or mobilisation fees. Yet, Transocean is L2 and will also get a contract, as ONGC wants two rigs in this category.

For Category-V, ONGC wants one drillship or semi-submersible and received seven offers. ONGC found Borgeston Dolphin (Dolphin Drilling), Scarabeo IV (Saipem), Ocean New Era (Diamond Offshore) and Atwood Southern Cross (Atwood Oceanics) technically unsuitable.

Aban Loyd offered three technically qualified rigs of which Frontier ice - drilling for ONGC till March this year at effective day rate of $45,000 emerges winner. Bids from Aban Loyd rigs in ONGCs Category-V tender for one rig Frontier Ice Frontier Duchess Frontier Discoverer Operating day rate $43,200 $49,900 $58,900 Non-operating day rate $41,040 $56,900 $55,955 Moving day rate $43,200 $55,900 $64,955 Equipment breakdown day rate $41,040 $53,900 $53,010 Mobilisation fee $1m $1.5m $1.5m Demobilisation fee None None None Value $25m $25m $25m

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