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ONGC dishes out jack-up awards

Greatship one of a host of rig owners joining Shelf in getting contracts off India

India’s state-controlled Oil & Natural Gas Corporation (ONGC) has awarded contracts for up to six jack-up drilling rigs, with a host of owners sharing in the contract awards.

Indian drilling contractors Aban Offshore, Jindal Drilling and Greatship have landed key rig contracts, while United Arab Emirates-based Shelf Drilling revealed one deal on Wednesday.

While Aban and Jindal won charter contracts for two rigs each, Greatship and Shelf won contracts for one each from ONGC.

Jindal, Aban and Shelf have confirmed the award of jack-up rig contracts from ONGC. However, Greatship is yet to make a formal announcement.

ONGC last year floated a jack-up tender in two separate categories to charter up to nine jack-up rigs capable of drilling in water depths up to 91 metres.

Shelf wins jack-up award

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While awards for the six jack rigs in the first category have been finalised by ONGC, the Indian giant is yet to finalise the award of up to three rigs in the second category.

The six jack-up rigs have been awarded on three-year terms under the first rig category requiring independent-leg, cantilever-type units, either of MLT, BMC or Levingston III-C design.

Jindal is believed to have emerged as the lowest bidder in the first rig category offering about $26,000 per day, industry sources said.

The various rig contracts are believed to have been finalised between day-rates ranging between $26,000 to $28,000, sources added.

Aban received an award from ONGC for its rigs Aban III and Aban IV, while Jindal got confirmation for its rigs Discovery-1 and Jindal Star.

Greatship won a contract for Greatdrill Chitra and Shelf landed a key contract for its rig Ron Tappmeyer.

In an announcement made to Bombay Stock Exchange on 24 January, Jindal said the company “has been awarded contract from ONGC for charter hire of offshore Drilling rig for contract period of three years, with contract value over $57 million".

However, Jindal did not specify that it won contracts from two jack-up rigs from ONGC.

Aban also confirmed on 24 January that it has received a letter of award for its rigs Aban III and Aban IV from ONGC, with deployment likely to be during financial year 2019-2020.

Shelf said in a statement that the jack-up “is due to start work for the Indian state-owned giant in the second quarter in the Mumbai High area under the three-year charter.”

Offers of 14 rigs were received in the first category, industry sources said, with domestic players Aban, Dynamic, Greatship and Jindal among the seven contractors said to have submitted bids.

Hallworthy of the UK and Middle East-based rig operators Shelf and Gulf Drilling were also thought to be among the bidders, sources said.

Contractors flood ONGC with jack-up rig offers

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In the second category, ONGC wants to charter three Friede & Goldman design cantilever-type jack-ups that are capable of drilling in water depths of up to 300 feet.

However, awards in the second category are yet to be finalised, sources said.

A total of three jack-up rigs have been offered in this second category.

Domestic player Jagson, Dynamic and Deepsea Global are thought to be competing in the second category.

Jagson offered Deepsea Fortune, Dynamic offered the KS Java Star and Deepsea Global offered the Deepsea Fossil, sources said.

Rigs in both categories should be capable of drilling high-angle wells up to 6000 metres.

At least 10 leading domestic and international rig operators offered a total of 27 rigs to ONGC in 2017 in a similar jack-up tender that called up for up to eight rigs across multiple categories.

Those thought to have landed jack-up contracts from that tender included Dynamic, Greatship, Jindal and Shelf, one source said.

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