Jagson lobbies ONGC to take idle rigs

Vol 20, PW 11 (23 Feb 17) News in Brief

Delhi-based drilling contractor Jagson Drilling has petitioned ONGC to remove a clause in its tender barring offshore rigs which have remained idle for three years or more.

In mid-February, Jagson wrote to ONGC chairman DK Sarraf requesting him to approve a change in the BEC (Bid Evaluation Criteria) of its tenders. In December 2016, ONGC amended a BEC clause in its tenders to hire onland rigs allowing bidders to offer rigs which have remained idle for or more than three years.

"There is a concern that ONGC will be flooded with offers for junk offshore rigs if the 'idling' clause is removed," said an industry source. "It is a valid concern." To counter this concern, Jagson has suggested that ONGC could accept offers only for those idling offshore rigs which have drilled a well in Indian waters.

"Not only that," adds our source. "A bidder should be asked to submit valid certification confirming that critical equipment on the rig such as Blow Out Preventers and mud pumps are fit for purpose.

Once the certificate is provided, ONGC can get the rig inspected by a third-party agency."