| Troubled by a spurt in charter rates, shipping companies have started scouting for new oil rigs. These rigs cost around Rs 800-900 crore each.
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| The charter hires of high specification jack-up rigs has shot up 77 per cent to $230,000 per day in last six months from $130,000 per day. The rate was at $100,000 per day a year before.
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| The list of companies making a beeline to buy out new oil rigs include Great Eastern Shipping, Mercator Lines, Varun Shipping, Jindal Drilling and Industries and Aban Lloyd.
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| Significantly, offshoring drilling in India is expected to double in next five years with more exploratory well are opening up. The Center is planning to offer 55 more blocks including 20 deep water exploration units.
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| "At present, India has a fleet of over 45 rigs with Oil and Natural Gas Corporation (ONGC) having 30 rigs. With new blocks of exploration coming up, jack up rigs are expected to double in next three to five years," industry sources said.
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| Worldwide, 415 jack-up rigs are available but only 313 are capable of drilling. Out of 415, over 80 per cent are 25 years old. Almost, 75 per cent of total rigs are 300 feet or less while the demand is for a drilling capacity with 350 feet to 400 feet.
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| "The scene at construction of brand new rigs are also scary. The rigs on order are at 62. However, the delivery of brand new rig will take place in third quarter of 2008. A brand new rig will cost between Rs 800 crore to Rs 900 crore," a source said.
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| Keppel FELS of Singapore is the leading shipyard of the world building jack-up rigs and controls about 70 per cent of the new buildings order book of the world. Keppel operates 16 yards across Asia-Pacific, the Gulf of Mexico, Brazil, the Caspian Sea, Kazakhstan, the Middle East and the North Sea.
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| "The yards including Keppel FELS are full," source said. Aban Lloyd, a serious player in offshore, is in the process acquiring Indonesian offshore company PT Apexindo Pratama Duta Tbk and planning to acquire one more rig.
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| Mumbai-based shipping company Mercator Lines has already placed an order worth Rs 810 crore with Keppel FELS for offshore jack-up oil rig.
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| It is scouting for one more rig and is in the process of firming up plans to foray into oil exploration and production segment too.
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| Great Eastern Shipping Company, Varun Shipping Company and Jindal Drilling are also planning to acquire brand new oil rigs. |
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