Oil India rig

Vol 15, PW 15 (09 Feb 12) News in Brief

Delhi-based driller Shiv Vani is expected to bid aggressively in an Oil India onland rig tender, where the bid submission deadline has been postponed from February 2 to February 22.

Oil India needs two 2000-hp onland rigs for two ‘firm’ years plus a one-year ‘optional’ extension. “Oil India extended the bid deadline following a request from JayBee Energy,” says an industry source.

“It did this happily as it might benefit from increased competition.” Shiv Vani, he adds, is likely to have an advantage as it has two 2000-hp rigs drilling for Oil India on three-year contracts expected to end soon.

“Shiv Vani has recovered 60% of its capital cost on these rigs,” we hear. “So it can quote rates nobody else can match.

” Other likely bidders like JayBee, Quippo, Black Pearl and John Energy might have to spend nearly Rs2cr ($403,859) on mobilising each rig to the northeast. Oil India can expect rates in this tender to be a little over $25,000/day.