Shiv Vani uses Rasson to win Sintex rig bid

Vol 18, PW 17 (23 Apr 15) Exploration & Production
     

Shiv Vani is using Ahmedabad-based Rasson Energy as a vehicle to hire its 1000-hp rig to Sintex Oil and Gas – the same rig it unsuccessfully tried to hire to Sintex through Quippo.

PETROWATCH learns Sintex on April 17 issued a LoI for a four-well contract to a Rasson-led consortium that includes Kolkata-based Simplex and Mumbai-based Texas Oil & Gas Services, a Shiv Vani affiliate. Texas Oil and Gas director Durga Prasad Mundra holds double charge as finance controller at Shiv Vani.

Sintex chose Rasson to replace Quippo, whose rig-hire contract it cancelled in February because of Quippo's demand for a Letter of Credit (LC) before mobilisation. Sintex asked Rasson to deploy the same 1000-hp Shiv Vani rig which Quippo was meant to deploy.

By April 25 this rig should mobilise at the first well location Well#1 at Sintex’s 144-sq km NELP-VIII block CB-ONN-2009/7. Sintex will pay Rasson an EDR of around Rs11 lakh/day ($17,640) including mobilisation and demobilisation charges.

Depending on the results, Sintex might extend the contract for another four wells. Shiv Vani is facing financial difficulties and owes more than Rs3000cr ($481m) to a consortium of banks ready to declare it a 'non-performing asset'.

An industry source says this is why Rasson has been used to support the consortium’s financial credentials. Simplex will provide technical services while Texas will supply the manpower.