Reliance receives deepwater rig bids

Vol 11, PW 7 (09 Aug 07) News in Brief

Pride International and Frigstaad have offered one deepwater drilling rig each to Reliance in a tender that closed on July 30th.

It is not known if other contractors, especially Transocean, offered rigs. Reliance wants one rig that can drill in 3500 metres water.

Contractors can choose one of two contracts: for three â€کfirm’ years and two-year extensions split into six-month periods; or a contract for two â€کfirm’ years and three-year extensions split into six-month periods. Both contracts are for five years.

Reliance wants the rig mobilised by 2009-10 but contractors say this will be “very tough as all deepwater rigs are booked till 2011.â€‌ Only a few rigs are available, which can drill in 3500 metres water depth.

“Reliance wants an ultra deepwater rig,â€‌ we hear. “But not many of these are in service.

â€‌ Reliance should be prepared to pay at least $600,000 per day for the rig, we are told. Today Reliance has only one deepwater rig working on its acreage: Deepwater Frontier.