`No more Friede & Goldman rigs', says ONGC

Vol 14, PW 23 (19 May 11) Exploration & Production

Before the end of this month (May) ONGC is likely to issue a tender to replace or re-hire three jack-ups working in the Mumbai High.

PETROWATCH learns Transocean-owned CE Thornton and FG McClintock are up for re-hire or replacement by ONGC, as is Noble Drilling’s Noble George McLeod, operated by Jindal Drilling. ONGC is likely to ask for one ‘slot-type rig’ in the re-hire tender and two other rigs meeting any of the following design specifications: Marathon LeTourneau, Baker Marine Class or Levingston.

“ONGC has told us it does not want any more Friede & Goldman design rigs,” say a potential bidder. “It has five such rigs working for it but doesn’t have enough drilling locations to justify hiring more Friede & Goldman rigs.

” This is bad news for Jindal Drilling, as Noble George McLeod is a Friede & Goldman rig. But Jindal could offer Noble George McLeod in the slot category where it can expect competition from Transocean’s slot-type rig CE Thornton and Aban Offshore’s Friede & Goldman rig Aban-V.

ONGC expects a good rate in this category because of the competition and estimates it should get a quote of $62,995/day plus 10.3% service tax. In the other category for this re-hire tender, where ONGC wants two rigs, competition is unlikely to be as intense.

Transocean might offer Marathon LeTourneau type rig FG McClintock for re-hire and Marathon LeTourneau rig Randolph Yost, sitting idle offshore Mumbai. US-based Rowan Drilling might bid as it tries to break into the Indian market.

Quotes are likely to be around $70,000/day plus service tax. CE Thornton and FG McClintock are on hire to ONGC till November 2011, while Noble-owned Noble George McLeod is on hire till December 2011.