Saipem rig will drill for GSPC at KG-OSN-2002/3

Vol 7, PW 25 (10 Mar 04) News in Brief

Last week, Gujarat State Petroleum hired Saipem rig Perro Negro-3 to launch its drilling programme at offshore KG basin block KG-OSN-2001/3 where it is operator.

PETROWATCH learns a two-member GSPC team signed the contract with Saipem in Dubai on Saturday after inspecting the rig, which is now being repaired at Sharjah. GSPCs first choice was Atwood Oceanics Vicksburg, which is drilling for ExxonMobil offshore Malaysia.

But both Atwood and ExxonMobil told the GSPC team in Malaysia early last week that the rig would not be available before December 2004. The disappointed GSPC team then went to Dubai for talks with Saipem.

PETROWATCH learns Perro Negro-3 has been contracted at a day rate of around $60,000 for four firm wells and two extensions of four wells each. Perro Negro-3 last drilled for ONGC offshore Mumbai and is expected to arrive on the GSPC location early May.

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