ONGC hires deepwater rig from Vantage for $1 bn

State-owned Oil and Natural Gas Corp (ONGC) has hired an ultra-deepwater drilling rig from New York Stock Exchange-listed Vantage Drilling Company for $1.1 billion for five years.

“The ultra-deepwater drillship, Platinum Explorer, commenced operations for ONGC in India (on December 29),” Vantage said in a press statement.

ONGC has contracted Platinum Explorer for five years for $1.1 billion, it said.

The rig has been newly built at Daewoo Shipbuilding and Marine Engineering’s Okpo shipyard in Korea.

The Platinum Explorer, following completion of shipyard construction, was mobilised to Indian waters this month.

The rig is owned 45 per cent by Vantage and 55 per cent by an affiliate of TMT Inc.

Vantage will operate the rig pursuant to a management agreement which provides for fees to Vantage, in addition to its proportionate share of cash flow.

Cayman Islands-registered Vantage is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and one ultra-deepwater drillship, the Platinum Explorer.

Company Chairman and CEO Paul Bragg said: “I congratulate our team and partners for outstanding performance, exceeding expectations, getting the Platinum Explorer on contract timely.

“We greatly appreciate the support of ONGC in preparation for and acceptance of Platinum Explorer. This is the culmination of nearly three years of coordinated efforts between our operations, engineering and project teams, along with the shipyard — DSME, our venders and ONGC. We look forward to the next five years of safe operations and drilling excellence.”

Vantage’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of eight owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major national and large independent oil and natural gas companies.