The refusal of low bidder Seadrill to extend the validity of their bid to ONGC for a DP floater appears to have rendered ONGC into an inert state with no word on whether they will re-tender or invite the third lowest bidder, Universal Services who offered Petroserv semi Louisiana, to match the Seadrill offer.
Second lowest bidder for the two rig requirement is Vantage Drilling with UDW drillship Platinum Explorer, currently stacked in Labuan, who has yet to be confirmed a winner. A Seadrill spokesman confirmed the company had pulled out, explaining that there were “delays in the tender process, which led to Seadrill being unable to secure the shipyard slot for the Sevan Driller to be able to meet the delivery date therefore we did not extend our bid validity”. Well, whatever.
It certainly brought rates for UDW floaters crashing down to a new low, at $108,600, exclusive of tax, a number lower than that offered for the moored mid water semi also tendered for by ONGC at the same time. Now it is likely that Vantage and Universal will have to match the Seadrill rate to win the awards.