Halliburton wins $21m contract

Vol 15, PW 24 (14 Jun 12) News in Brief

Halliburton executives will be relieved that ONGC has revived a contract for four sets of ‘steerable downhole mud motors’ used at its western offshore drilling operations.

Halliburton received the LoA on May 21, confirming a three-year contract extension at $21m. Rivals Schlumberger, Weatherford and Baker Hughes also bid by the November deadline after ONGC issued the tender on September 16 last year.

But when ONGC opened price bids in January, Halliburton was lowest bidder. Schlumberger came second with a quote 18% higher, while Weatherford’s quote was 50% higher.

Baker came last. Still dissatisfied ONGC negotiated with Halliburton in March to lower its rate to $21m.

ONGC uses steerable downhole mud motors for directional drilling and inserts each motor into a wellbore to drive the drill bit at the desired angle and direction until TD is reached. Then ONGC retrieves the motor for servicing before moving it to the next wellbore.