Cairn to award helicopter contracts soon
Helicopter providers expect Cairn to make a firm decision in the next few days on hiring one helicopter at its offshore CB-OS/2 licence and another at Ravva.
In early July Cairn opened price bids for both helicopters received several months ago from Pawan Hans, Global Vectra, Heligo Charters, Deccan Aviation and United Helicharters. On offer is a five-year contract at CB-OS/2 to replace its present contract with Deccan Aviation which originally expired on December 31, 2015 but has been extended to August 2016.
Deccan is unlikely to receive another extension as its helicopter is about 25-years old and Cairn's tender states the helicopter must be no more than 15 years old at the end of the contract. At Ravva, Cairn is offering a 40-month contract.
Its current Global Vectra contract ends in September 2016 but has been extended until April 2017. Cairn is believed to have received low quotes for both helicopters as hire rates have fallen 10% since last year.
However operating costs have risen 5% as spare part prices have increased.