ONGC rehires Matdrill

Vol 14, PW 14 (13 Jan 11) News in Brief

Jagson Drilling is expected to win an ONGC tender to rehire a mat-supported rig for three years.

When ONGC opened price bids in the last week of December, Jagson was the only bidder in the race, quoting around $43,000/day for Deepsea Matdrill. This Jagson rig is already working for ONGC offshore Mumbai and its current contract ends this month.

ONGC, we hear, is expected to issue a Letter of Intent (LoI) to Jagson soon, even though in private it’s displeased with Matdrill’s performance. ONGC didn’t open Aban Offshore’s price bid because it couldn’t confirm that Aban-II would be available.

Many are surprised that bidders Essar Oilfield Services and Hercules Offshore were disqualified in this tender. Essar was disqualified as it signed only a conditional MoU to buy Seahawk 2505 from Houston-based Seahawk Drilling, but it’s not clear why ONGC disqualified Hercules 205.

“Seahawk and Hercules are recognised worldwide as suppliers of mat-supported rigs,” we hear, “but were both disqualified.”

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