Aban and Jagson in rig race

Vol 13, PW 25 (03 Jun 10) News in Brief

Jagson Drilling and Aban Offshore are fighting to win ONGC’s tender to re-hire a mat-supported rig for three years.

Jagson already has Deepsea Matdrill drilling for ONGC and Aban has Aban-II. But ONGC wants to re-hire just one of them, so competition will be fierce.

“No foreign driller will bid,” we hear. “Indian drillers get 10% price preference.

But even if other Indian drillers bid they’ll pay costs to mobilise their rigs to Indian waters, unlike Jagson and Aban.” Deepsea Matdrill is working at $40,000/day; Aban-II is working for $75,000/day.

Aban’s contract expired in May but ONGC gave it a one-well extension till the end of July at Jagson’s lower rate. Deepsea Matdrill’s contract ended in April but the rig is on extension till January 2011.

ONGC has simultaneously invited bids for a floater or barge-mounted rig to replace or re-hire Great Offshore’s barge mounted rig Badrinath, on hire at approximately $80,000/day. Bid documents for both tenders are on sale until June 8 and the pre-bid for both tenders is in Mumbai on June 16.

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