Transocean will operate Dhirubhai Deepwater KG2 para ONGC through a two-year contract whose campaign would begin during the first quarter of 2027.
Offshore drilling company Transocean obtained a binding two-year award letter with Oil and Natural Gas Corporation (ONGC) to deploy the Dhirubhai Deepwater KG2 ultra-deepwater drilling vessel in India.
The agreement represents an approximate contractual value of $300 million, figure which includes additional services and fees associated with the mobilization of the unit.
According to the planned schedule, the offshore drilling campaign will begin during the first quarter of 2027. With this award, Transocean adds a new long-term allocation for one of its assets specializing in ultra-deepwater operations.
The Dhirubhai Deepwater KG2 will operate for 2 years for ONGC
Furthermore, the contract includes two years of options with pre-established prices, in case ONGC by exercising all available extensions, the Dhirubhai Deepwater KG2 could remain working in Indian waters until early 2031.
This formula allows the economic conditions applicable to a potential campaign extension to be established from the outset. However, the unit’s continued participation beyond the initial period will depend on ONGC’s decision to exercise these options.
The Dhirubhai Deepwater KG2 is a drilling vessel built in 2010 and designed for ultra-deepwater operations. The unit had been inactive since May 2016 after the conclusion of a long-term contract with Petrobras in Brazil.
Therefore, the new award will allow the ship to be returned to active service and ensure an initial two-year campaign starting in 2027.
ONGC expands its deepwater drilling capacity
Furthermore, the addition of the Dhirubhai Deepwater KG2 comes as ONGC increases its capacity to conduct deeper offshore operations off the coast of India.
The Indian state-owned company had already contracted Vantage’s Platinum Explorer in a deal valued at $261 million. The arrival of another ultra-deepwater rig expands the resources available for its offshore drilling programs.
To Transocean the contract strengthens its portfolio of work in the ultra-deepwater segment, the company focuses its activity on technically demanding offshore drilling services and operations developed under complex environmental conditions.
Currently, Transocean owns or operates a fleet of 27 mobile offshore drilling units. Of these, 20 are ultra-deepwater units and seven are designed for harsh environments.
The offshore campaign is planned for 2027
Finally, the schedule places the start of operations of the Dhirubhai Deepwater KG2 in the first quarter of 2027 the value of approximately $300 million corresponds to the announced contract period and includes both additional services and mobilization expenses.
The option to extend the operation for another two years gives ONGC additional capacity to keep the vessel in India if its drilling plans require it. If all options are exercised, the unit could remain linked to the Indian company’s operations until early 2031.
Source: World Oil
Photo: Shutterstock
