DK Sarraf and the tale of two Shelf jack-ups

Vol 20, PW 19 (15 Jun 17) People & Policy

ONGC is investigating chairman DK Sarraf's role in the contract extension of two Shelf Drilling jack-ups.

PETROWATCH learns ONGC chief vigilance officer Dr. AK Ambasht received an anonymous complaint on June 1 against contract extensions granted to Shelf jack-ups Ron Tappmeyer and J.

T. Angel, claiming these led to "losses for the government and ONGC." Seen by this report, copies of the anonymous complaint are marked to oil minister Dharmendra Pradhan, oil secretary KD Tripathi and the PMO.

Angel's three-year contract which should have ended on April 20 this year (2017); Tappmeyer's a month earlier on March 17. Under scrutiny is why Angel's contract was extended at $44,500/day when ONGC's tender committee told the Executive Purchase Committee (EPC) that ONGC should pay only $38,653/day.

In the letter, the writer wonders why chairman Sarraf did not ask the EPC to negotiate with Shelf. "This decision caused a loss to ONGC," reads the complaint.

"Why didn't ONGC seek offers from other contractors? You are urged to investigate." Angel's contract with ONGC finally ended on May 8 after it completed additional well MBS051NAA-D - the rig is presently moored off Mumbai. Also worrying, says the letter, is why ONGC director technical and field services Shashi Shanker supported Tappmeyer's contract extension to work over well RS-4#6 when it failed to enhance production.