Transocean slashes ONGC jack-up rate

Vol 11, PW 8 (23 Aug 07) News in Brief

Transocean has bowed to pressure from ONGC and slashed the day rate for jack-ups FG McClintock and CE Thornton.

PETROWATCH learns ONGC’s Executive Purchase Committee is examining the (undisclosed) revised offer, submitted last week, and is expected to issue a LoI shortly. On August 8th ONGC asked Transocean and Aban Loyd to cut their rates for the hire of five jack-ups on three year contracts each to match rates offered by Jindal Drilling and Great Offshore in a separate tender for two â€کnew-build’ rigs for which LOIs were awarded last month.

In that tender, Great Offshore quoted $139,000 per day, while Jindal quoted $143,800 per day. Aban is believed to have categorically told ONGC it can’t reduce its rates and talks continue.

On August 2nd Aban offered ONGC jack-up rigs Aban V and Aban IV for $160,132 per day each and Aban III for $159,903 per day. Transocean offered FG McClintock for $164,946 per day and CE Thornton for $164,273 per day.