ONGC jack-up tender sees 25 interested

Vol 14, PW 26 (30 Jun 11) Exploration & Production
     

Twenty-five companies are competing to win an ONGC jack-up tender, for which bids must be submitted by July 1.

PETROWATCH learns Jindal Drilling, Deepwater Drilling, Greatship, Aban Offshore, Atwood Oceanics, British American Offshore and Transocean are among those expected to submit bids in ONGC’s tender to hire two ‘new generation’ jack-ups – built any time after 2004 – on five-year contracts. One company expected to bid aggressively is Jindal, which could offer jack-up Discovery-1 to ONGC for re-hire: her present three-year contract with ONGC ends in October 2011.

Greatship could also offer a new generation rig it has ordered from one of the Lamprell yards in Dubai, expected to be delivered in December 2012. But an industry source believes few ‘new-build’ jack-ups will be ‘seriously’ offered because companies won’t want to lower their rates to match those offered for older rigs.

“In 2004 it cost only between $140m and $160m to build a jack-up but nowadays it can cost as much as $200m,” he says. “Rigs built in 2004 will have recovered their construction costs by now and can be offered at lower rates than rigs only just entering the market.

” Since rigs already working in the market will have a clear price advantage over new-builds, expect Atwood Oceanics to offer its rig Atwood Aurora which is readily available. Similarly, British American Offshore could offer Rowan Gorilla-IV, which will become available in July.

Any enterprising Indian driller could also offer China Oilfield Services-owned jack-up COSL Boss, also available. “Expect aggressive bids from Transocean and Aban,” adds a driller.

“They’re sure to have rigs built just after 2004.” ONGC can expect to get good rates in this tender as it is offering five-year contracts.

Bidders are expected to quote rates under $150,000/day.