ONGC set to award contracts to hire six oil rigs a day
OIL & GAS

ONGC set to award contracts to hire six oil rigs a day

After concluding pricing discussions following a global tender, state-owned Oil and Natural Gas Corporation Ltd (ONGC) is prepared to contract six oil drilling rigs, including one from Greatship (India) Ltd, for day rates ranging between $78,000 and $80,000, according to numerous sources.

The largest private ocean carrier in India, Great Eastern Shipping Co Ltd, has an offshore division called Greatship (India) Ltd. The largest oil and gas explorer in India will sign three-year contracts to charter three jack-up rigs from companies in Dubai, Abu Dhabi, and Dubai, including two from Shelf Drilling Ltd., one from Jindal Drilling & Industries Ltd., and two from Foresight Offshore Drilling Ltd.

Based on the rig design and usage for drilling new wells and performing work on existing fields, the State-run company's 12 rig tender was divided into three groups. The first group includes the six oil drilling rigs that will be awarded.

ONGC normally engages in price discussions with the lowest bidders in each category after the price bids are opened to decrease their quoted prices. On this basis, the other bidders are then required to match the reduced rates before the contracts are finalised.

"All of the rig operators that submitted the lowest bids for the tender remained steadfast in their pricing despite a recent sharp increase in the worldwide rates for hiring rigs. As a result, ONGC was only able to slightly lower the charges "a representative briefed on the development stated. With the lowest bidders, ONGC is currently discussing the prices for Category 2 and 3 rigs. Four rigs each from these two groups will be hired by the oil company.

After struggling for a while, the offshore oil drilling business has recovered, with day rates for three- year contracts in the crucial Middle East region rising to $110,000 from $50,000.

The price of some of ONGC's most recent rig hire contracts was between $45,000 and $48,000 per day, which was more expensive than the day cost of mid-$20,000 decided upon almost two years ago.

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After concluding pricing discussions following a global tender, state-owned Oil and Natural Gas Corporation Ltd (ONGC) is prepared to contract six oil drilling rigs, including one from Greatship (India) Ltd, for day rates ranging between $78,000 and $80,000, according to numerous sources. The largest private ocean carrier in India, Great Eastern Shipping Co Ltd, has an offshore division called Greatship (India) Ltd. The largest oil and gas explorer in India will sign three-year contracts to charter three jack-up rigs from companies in Dubai, Abu Dhabi, and Dubai, including two from Shelf Drilling Ltd., one from Jindal Drilling & Industries Ltd., and two from Foresight Offshore Drilling Ltd. Based on the rig design and usage for drilling new wells and performing work on existing fields, the State-run company's 12 rig tender was divided into three groups. The first group includes the six oil drilling rigs that will be awarded. ONGC normally engages in price discussions with the lowest bidders in each category after the price bids are opened to decrease their quoted prices. On this basis, the other bidders are then required to match the reduced rates before the contracts are finalised. All of the rig operators that submitted the lowest bids for the tender remained steadfast in their pricing despite a recent sharp increase in the worldwide rates for hiring rigs. As a result, ONGC was only able to slightly lower the charges a representative briefed on the development stated. With the lowest bidders, ONGC is currently discussing the prices for Category 2 and 3 rigs. Four rigs each from these two groups will be hired by the oil company. After struggling for a while, the offshore oil drilling business has recovered, with day rates for three- year contracts in the crucial Middle East region rising to $110,000 from $50,000. The price of some of ONGC's most recent rig hire contracts was between $45,000 and $48,000 per day, which was more expensive than the day cost of mid-$20,000 decided upon almost two years ago.

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