Oil India fury at Shiv Vani failure to mobilise rig

Vol 17, PW 14 (27 Feb 14) Exploration & Production
     

Shiv Vani is under fire for failing to mobilise its 2000-hp rig to Mizoram gas-prone block MZ-ONN-2004/1 by the February 23 deadline.

“Shiv Vani has landed us in big trouble,” complains Oil India. “They've completely ruined our plans.

” When contacted, a Shiv Vani source said it was planning to mobilise the rig in a day or two. But Oil India asserts it has yet to receive any communication from Shiv Vani and is planning to encash the company’s bank guarantee.

Oil India needs two rigs at this block and hired Shiv Vani's rig last April. Originally it thought of hiring another rig from second ranked bidder JayBee Energy but this was forbidden by the PSC.

So Oil India issued a second rig tender which has been dragging on and where the latest deadline for bids was February 25, likely to be extended on bidders requests. "Because Shiv Vani failed to mobilise we must wait to begin drilling until we award the tender for the second rig," adds Oil India.

"We might also consider deploying our own rig." Shiv Vani previously wanted to sub-contract the job to Quippo Oil & Gas but Oil India refused as this is also not allowed under the PSC.

"We all know Shiv Vani is in a financial mess,” adds another source. “That's why they didn't mobilise.