ONGC awards drilling contract to Sevan Marine

India's Oil and Natural Gas Corporation Ltd. (ONGC) has given Sevan Marine a firm order for the charter of an ultra deepwater drilling unit.

Offshore staff

ARENDAL, Norway -- India's Oil and Natural Gas Corporation Ltd. (ONGC) has given Sevan Marine a firm order for the charter of an ultra deepwater drilling unit.

The drilling contract will have a fixed term of three years, starting from Dec. 31, 2010. Expected revenues could be approximately $569 million including mobilization. Sevan Marine's scope will in addition include the provision of ROVs, which will be compensated separately.

Sevan has already secured commitments from shipyard and critical equipment suppliers for the construction of the drilling unit.

Sevan Marine will provide a newbuild drilling rig to ONGC, based on its proprietary Sevan 650 design. The rig will be with a capacity to drill in water depths to 10,000 ft (3,048 m). It will have a variable deck load of more than 15,000 metric tons (16,535 tons) and a high storage capacity of bulk materials and drilling fluids, reducing the need for re-supply. The secluded moon pool area limits the environmental impact of potential oil spills.

Sevan Marine's partner in India is Jindal Drilling & Industries Ltd., with its head office in New Delhi.

06/13/2008

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