Under repair Badrinath gets ONGC extension

Vol 20, PW 6 (01 Dec 16) News in Brief

Despite rumours to the contrary, troubled GOL Offshore is confident it can mobilise its Badrinath drill barge for ONGC in the new year.

This report learns ONGC this week extended the financially stricken vessel and rig provider's mobilisation deadline from October 15 to February 15, 2017 to give the company more time to complete repairs so it can begin its three-year contract. This has come as a much-needed lease of life for financially distressed GOL which is confident banks will now lend it money to complete upgrades needed on the rig, estimated to cost around Rs100cr ($14m).

"Out of this Rs55cr ($8m) has been committed by GOL," says a source. "The remaining amount (Rs44cr) will now come thanks to the formal extension letter from ONGC." Badrinath is presently moored in the PNV channel off Mumbai with 45% of the repairs completed.

"Most of the remaining work relates to repairs of equipment by OEMs (Original Equipment Manufacturers) in India." Sometime in August, GOL sent across $2.7m to ONGC as a Performance Bank Guarantee for Badrinath, hired on March 3 at an ODR of $68,900.

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