Asian defends low Oil India 2D seismic offers
Asian Oilfield promoter Kapil Garg has defended the company's low quotes to win yet another two Oil India 2D jobs amid growing doubts about how it can expect to make any money.
When Oil India opened price bids on November 18 it found Asian had quoted just Rs63cr ($9m) to shoot 875-lkm 2D in the North Cachar or Karbi Anglong area against Rs81cr ($12m) quoted by second lowest bidder and rival Geotech. Asian also quoted Rs141cr ($21m) to shoot 870-lkm in Manipur against Rs180cr ($26m) quoted by GTC Oilfield Services.
"The truth is Oil India told us we bid higher than its own estimate," Garg tells this report. "They have called us to negotiate." Despite this, its widely believed Asian will receive the LoA next month (December).
Garg also defends Asian's low quotes to win a separate 2633-lkm 2D job in October for around Rs140cr ($20m). "We already have equipment which is depreciated," adds Garg.
"Others might have to buy new equipment. And we have wireless technology that needs less manpower.
That's why we could quote lower." Asian's share price jumped 6.4% a day after it informed the BSE on November 21 that it had received the LoAs for the 2633-lkm job in Mizoram, Tripura, Assam and parts of Arunachal Pradesh including the north and south banks of the Brahmaputra River.