Shelf hits back at ONGC favouritism allegation

Vol 20, PW 12 (09 Mar 17) Exploration & Production
     

Shelf Drilling has hit back at claims ONGC is favouring it by extending two rig contracts.

ONGC's Executive Purchase Committee is set to discuss extensions to Shelf Drilling-owned rigs J.T.

Angel and Ron Tappmeyer at its next meeting, scheduled for March 14. Each rig is working at a $49,900 ODR contract.

ONGC wants J.T.

Angel to drill exploration well MBS051NAA-D and Ron Tappmeyer to remain at its current location to complete a workover of well RS4#6. "This should be investigated by vigilance!" demands a rival driller.

"We're waiting for ONGC to issue a new rig tender but it's unfairly extending Shelf's contracts." When contacted, Shelf argues ONGC has assigned the additional well strictly within the terms of its uncompleted contract for Angel which runs till April 20. "ONGC must inform us if it plans to release the rig at least a month before the contract ends or by March 22," says Shelf.

"What's more Angel has 20 days unpaid 'downtime' available in its contract." Shelf believes it can complete MBS051NAA-D by mid-May. With additional rig time, this keeps it within contract terms.

Tappmeyer similarly has 10 days downtime available allowing ONGC to keep the rig beyond March 17 till March 27. "Tappmeyer's well (RS4#6) will be completed in 10 or 12 days," adds Shelf.

"Then the rig will be released. Nobody is favouring us." Shelf warns of "vested interests" distorting facts to damage its reputation.