ONGC seismic deadline on 29th January

Vol 10, PW 19 (25 Jan 07) News in Brief

ONGC has set 29th January as the cut-off date for bids to charter hire a seismic vessel.

Contractors welcome ONGC’s decision to hire a minimum six-streamer vessel for three seasons as a way of capping prices that have seen seismic rates soar by 40% over the last 12 months. “Most oil companies hire seismic vessels on a project-to-project basis,â€‌ says a potential bidder.

“Charter hiring a vessel for three years is not normal but definitely the sensible way to go.â€‌ Bids for a six-streamer vessel typically range around $150,000 per day yet contractors admit to “challengesâ€‌ in the tender that allows them to bid for eight, ten or 12-streamer boats.

Three years is a good term and ONGC is likely to get what it wants,â€‌ adds a source. “Over the next two years a lot of extra capacity is coming onto the market.

â€‌ Possible bidders include PGS, Wavefied Inseis and SCAN Geophysical from Norway, Western Geco, CGG and Fugro. Only Western CGG and PGS are believed to have spare capacity.