Great Eastern and Transocean Share Category-IV

ONGC was looking for two slot rigs in Category-IV and received four offers: Kedarnath (Great Eastern), CE Thornton (Transocean), Atwood Beacon (Atwood Oceanics) and Perro Negro 5 (Saipem). ONGC found them all technically suitable and opened price bids of each.

Dayrate Category CE Thornton Kedarnath Perro Negro 5 Atwood Beacon
Operating Dayrate $45,000 $49,200 $45,624 $92,000
Non-Operating Dayrate $42,750 $46,750 $41,518 $87,400
Moving Dayrate $30,000 $45,978 $41,518 $87,400
Equipment Breakdown Dayrate $20,000 None $40,605 $87,400
Mobilization Fee $500,000 None $3 Million $1.5 Million
De-Mobilization Fee None None None None
Value $52.5 Million $15 Million $35 Million $110 Million


Transocean was the lowest and should have been 'L1'. But instead Great Eastern is 'L1' even though its offer is higher. Great Eastern is an Indian company and - according to ONGC policy will get 10% price preference over any foreign competitor. Even without the price preference, it would have been a close finish because unlike Transocean, Great Eastern has quoted no 'equipment breakdown day rate' or mobilization fees.

Yet, Transocean is 'L2' and will also get a contract, as ONGC wants two rigs in this category.

For Category-V, ONGC wants one drillship or semi-submersible and received seven offers.

ONGC found Borgeston Dolphin (Dolphin Drilling), Scarabeo IV (Saipem), Ocean New Era (Diamond Offshore) and Atwood Southern Cross (Atwood Oceanics) technically unsuitable.

Aban Loyd offered three technically qualified rigs of which Frontier Ice - drilling for ONGC till March this year at 'effective day rate' of $45,000 emerges winner.

Dayrate Category Frontier Ice Frontier Duchess Frontier Discoverer
Operating Dayrate $43,200 $49,900 $58,900
Non-Operating Dayrate $41,040 $56,900 $55,955
Moving Dayrate $43,200 $55,900 $64,955
Equipment Breakdown Dayrate $41,040 $53,900 $53,010
Mobilization Fee $1 Million $1.5 Million $1.5 Million
De-Mobilization Fee None None None
Value $35 Million $25 Million $25 Million


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