Financial Daily from THE HINDU group of publications
Saturday, Mar 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Mar 25, 2006 |
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Corporate
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Alliances & Joint Ventures Industry & Economy - Petroleum Jindal Drilling signs deal with Keppels Felles for second rig Jayanta Mallick
Rig plans The rig will be constructed and delivered over a period of 30 months and the total project cost would be around $171 million.
Kolkata , March 24 Jindal Drilling and Industries signed a deal on Thursday for buying its second rig from Keppels Felles in Singapore at a cost of $173 million. According to industry sources, a deal for deploying the 300-feet-plus (cantilever jack-up) drilling rig would be signed with ONGC shortly at a likely forward rate of $175,000 a day. Jindal Drilling would get the delivery of the rig, after construction, by the end of 2008. This acquisition puts Jindal Drilling firmly on the domestic offshore sector and with two own rigs, places it after Aban Lloyd Chiles, which has seven rigs under its belt. Earlier, after Business Line had reported its first acquisition on March 8, Jindal Drilling had informed the stock exchanges that Discovery Hydrocarbons (a company being merged with it) has signed a vessel construction agreement for a newly built cantilever jack-up offshore drilling rig. The rig will be constructed and delivered over a period of 30 months and the total project cost would be around $171 million. Jindal Drilling's existing two hired rigs are from Noble Drilling Corporation of the US at a lease rental of $61,000 each a day; they are deployed at ONGC sites on the west coast. However, the three-year charter for the two rigs would expire this year. While the lease agreement for one ends on April 1, the other one will remain till December 31. According to industry sources, the company's revenue profile would change dramatically after deployment of the owned rigs as the income would turn from a thin spread (between lease rental and deployment rate) to a full return on investment. The Jindal Drilling scrip closed at 294.80 on Friday, up 1.60 per cent on the NSE with a traded quantity of 85,107 shares.
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