Reliance hires Deepwater Frontier for two years

Vol 9, PW 7 (14 Jul 05) News in Brief

Reliance has hired Transocean drillship Deepwater Frontier on a two-year contract.

Without mentioning Reliance, a Transocean statement said the drillship has been awarded a two-year contract by an international oil and gas operator. Adds Transocean: The contract is expected to commence in the late-third quarter or early-fourth quarter of 2006.

Till then the drillship is on contract to Petrobras of Brazil. Revenues of an estimated $234m could be generated over the two-year contract period, excluding revenues for mobilisation, demobilisation and client reimbursables.

These could work out to an additional $30m. Reliance is believed to have secured a very good rate because, nowadays no driller looks at long-term contracts.

Reliance is likely to deploy the drillship at its KG basin block KG-DWN-98/3 where it has made a 14-tcf discovery. Deepwater Frontier can drill in water depths of up to 10,000 feet.

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