ONGC offered 11 jack-ups from five companies

Vol 24, PW 19 (12 Aug 21) Exploration & Production

Despite its much-hyped roadshow, ONGC has managed to attract only one new company to its tender to re-hire or replace four jack-ups for three years.

By the extended August 3 (2021) deadline, ONGC saw five bidders offer 11 rigs. ONGC wants three Marathon Le Tourneau or Baker Marine Class rigs in Category 1 and one Friede & Goldman rig in Category 2.

In Category 1, four bidders offered seven rigs plus two "alternate’ rigs. Aban Singapore offered 2008-built Aban VIII; Greatship offered 2009-built Greatdrill Chitra and 2013-built Greatdrill Chaaya as an alternative.

Foresight Drilling offered Foresight Rig 372, a Keppel FELS B Class rig under construction in Singapore, and Foresight Rig 373, a similar class rig, also under construction in Singapore. Shelf Drilling offered 1978-built Ron Tappmeyer, 1992-built Compact Driller and 1982-built Key Singapore.

Shelf also offered 1983-built Parameswara as an alternative to Key Singapore. In Category 2, Shelf Drilling offered 1981-built Harvey H.

Ward, and Egypt-based newcomer Advance Energy Systems offered 1981-built Admarine VIII. But Chaaya is likely to be out of the race after bidding lowest on July 15 in ONGC’s unrelated tender to rehire or replace two workover rigs for three years.

Parameswara might also be out because she ranked second in the two workover tender and is expected to get an LoA if Shelf matches Greatship’s Chaaya's rate. ONGC wants Chaaya’s day rate reduced and held negotiations in late July with Greatship.

ONGC will pay more for rigs in this four-rig tender than in the workover rig tender, says a source. "Rates will certainly have been more than in the two workover rig tender," he adds, "The (rig hire) market is looking up, thanks to rising oil prices."

In the two workover rig tender, Chaaya was offered at an ODR of $34,657 and EDR of $33,750, followed by Parameswara at an ODR of $37,500 and an EDR of $36,502 plus 18% GST. For a complete breakdown of all offshore rigs operating and expected in Indian waters, click here.