More jack-ups and land rigs for ONGC

Vol 14, PW 11 (18 Nov 10) Exploration & Production
     

Great news for rig manufacturers: ONGC is planning to expand its offshore and onshore rig fleets.

PETROWATCH learns eager shipyards in India, the Middle East and Southeast Asia can expect a long-delayed ONGC tender for four ‘new-build’ jack ups early next year (2011). “We originally meant to issue this tender in 2010,” confirms an ONGC source, “but priorities changed and there were differences of opinion among (ONGC) management.

It is now likely to be out in early 2011.” ONGC wants four jack-ups that can drill in 350-ft water depths and operate in a High Pressure/High Temperature environment.

It plans to use these rigs mainly in the Mumbai High offshore and has already completed all “technical work” for the upcoming tender like choosing the design and specifications. “Much work has been done,” we hear.

“Only final approval is needed.” ONGC estimates each jack-up could cost Rs700cr ($156m) and take three years to construct.

It wants these jack-ups designed to fit as many of its offshore production platforms as possible. ONGC also wants to buy 10 more lands rigs, we hear, four of which will be 1000-hp ‘mobile’ rigs while six will be a mix of 2000-hp and 3000-hp ‘skid-mounted’ rigs.

It has “finalised” the capacity specifications for these land-rigs but will not be issuing any tender. Instead, it will probably ‘nominate’ state-owned Bharat Heavy Electricals (BHEL) to manufacture the rigs.

“BHEL is a government company,” says ONGC, “so there won’t be any queries about why we didn’t tender for this contract. BHEL is also the original equipment manufacturer for most ONGC land rigs.

” In total, ONGC estimates 10 new land rigs will cost it around Rs900cr ($201m). Each land rig could take about two years to build.

“We expect to receive two (land) rigs a year once the order is placed.”

LNG Summit