ONGC signs with Ocean Rig for deepwater rigs

India's ONGC signed an MOU with Ocean Rig to contract two fifth-generation semisubmersible deepwater rigs for 5 years each for $2.07 billion total.

Oct 24th, 2007

Shirish Nadkarni
OGJ Correspondent

MUMBAI, Oct. 24 -- Oil & Natural Gas Corp. (ONGC) signed a memorandum of understanding with Ocean Rig ASA to contract two fifth-generation semisubmersible deepwater rigs for 5 years each for $2.07 billion total.

The Leiv Eiriksson was completed in 2001 while the Eirik Raude was completed in 2002, both built to the Bingo 9000 design. The Eirik Raude is under contract with ExxonMobil Corp. in Canada and would be available around August 2008. The Leiv Eriksson is under contract with Royal Dutch Shell PLC in the North Sea and would become available in October 2009.

"Except Ocean Rig, none of the other bidders were in a position to supply rigs within the stipulated time frame," said a senior ONGC official. "In fact, we are anxious to get all the formalities of the signing completed as soon as possible, in the face of the continuing shortage of deepwater drilling rigs."

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