ONGC levies damages on CGG for seismic delays

Vol 9, PW 4 (01 Jun 05) News in Brief
     

ONGC will impose Liquidated Damages on CGG after it said it wont be able to deliver a 3D ocean bottom cable and transition zone survey by the 15th June deadline.

PETROWATCH learns the LD is equivalent to 5% of the total $33.9m OBC contract value that CGG was awarded in September 2004 to acquire 3D across 330-sq km off Indias east coast: 68-sq km IA (shallow water), 185-sq km IB-C (transition zone and land) and 77-sq km IF-B (shallow water). We wanted CGG to complete the survey by 31st January but it began work only last November, reveals a source.

CGG is also expected to pay 5% damages for failing to provide seismic on time of 4894-sq km in the Cauvery basin part of a $103m contract awarded in August last year to shoot 3D across 13,000-sq km on the west and east coasts of India for which it deployed four multi-streamer vessels. One of them, CGG Alize, has been diverted to the North Sea.

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