Simplex and Om Metals in Oil India rig tender

Vol 18, PW 1 (28 Aug 14) Exploration & Production

Oil India is tired of seeing the same companies bidding in its rig tenders.

So it’s undoubtedly pleased newcomers Simplex Infrastructure and Om Metals are bidding for one of two tenders to hire 1400-hp rigs. Oil India received technical and price bids from Kolkata-based Simplex, Mumbai-based Om, Jindal Drilling and Shiv Vani on August 5.

Issued on May 9, the tender offers a three-year contract with a possible one-year extension to drill at yet-to-be-identified locations in Assam and Arunachal Pradesh. Construction experts Simplex entered the drilling market in 2007 with a single 1500-hp drilling rig offered to Oil India on a two-year contract the same year.

Newcomer Om, best known for building hydropower plants, is collaborating with Chinese firm Kerui Petroleum. “If we win the tender we’ll buy a new rig from Kerui and they’ll provide us technical support,” says an Om manager.

“This is our first bid in the drilling sector. Even if we lose we’ll keep a watch on future rig tenders.

” In the past Kerui has supplied rigs to JayBee Energy, Quippo, John Energy and Shiv Vani. Day rates are expected to range from $16,000 to $20,000/day.

In Oil India’s other tender to hire a 1400-hp rig, bids were expected from prospective drillers by August 27.