DD-KG1 wins LoA from ONGC
ONGC has formally hired Transocean deepwater drillship DD-KG1 but still awaits bids in an accompanying bundled services tender.
According to ONGC's LoA awarded on August 29 (2023), DD-KG1 must mobilise to the eastern offshore in the first quarter of 2024 or by March 31 (2024). ONGC has hired the rig on a 21-month contract, with an option to terminate it after 12 months, to drill four ultra-deepwater wells off the Andaman & Nicobar Islands and the Cauvery basin.
"ONGC's LoA rate is almost the same as the price Transocean offered," we hear. When ONGC opened price bids on August 3 (2023), Transocean bid an ODR of $348,000 for DD-KG1, followed by Vantage Drilling's Platinum Explorer at an ODR of $390,000 and Vantage-managed West Polaris at an ODR of $395,000.
Adding GST at 18% and $5m mobilisation fees, rig DD-KG1 was still lowest with an EDR of $424,000, followed by Platinum Explorer at an EDR of $484,000 and West Polaris at an EDR of $504,000. ONGC held two rounds of price negotiations with Transocean but received only a marginal discount.
DD-KG1 is currently doing well completions for Reliance-BP at the MJ field inside KG-DWN-98/3. ONGC's next step is to award the 'bundled services' contract for drilling and well services plus vessels, excluding helicopters.
Anyone interested must send bids by September 20 (2023) "as ONGC has already sent out clarifications." Schlumberger, GE-Baker Hughes and Halliburton are expected to compete for this estimated $250,000/day contract.
One source believes GE-Baker Hughes might not bid. But a GE-Baker Hughes source tells us: "GE-Baker Hughes is actively engaged with ONGC on this tender."
Schlumberger is ONGC's bundled services contractor for an unrelated eastern offshore deepwater drilling campaign.