Greka in trouble as court seizes two CBM rigs

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

London-listed Greka Drilling probably regrets the day it made an enemy of Bangalore-based drilling fluids provider Petropath Fluids.

Bhaskar Naik, managing director, tells this report his complaint against Greka has resulted in the Bangalore Civil Court issuing an order on May 31 to "attach" or seize Greka's two CBM drilling rigs GD-7517 and GD-7519. This has thrown into doubt Greka's hopes of winning an ONGC tender to drill development wells at the Bokaro or BK-CBM-2001/1 block over three years, where it announced on April 6 it had bid lowest.

"On June 3 we forwarded the (court) order to the PMO, oil ministry, DGH and ONGC," says Naik. "We felt it was our duty to inform them that Greka has not paid its contractors." Naik adds the Bangalore order has likewise been sent to the court at Durgapur in West Bengal where the two Greka rigs are sitting idle for more than five months after completing their last Essar contract.

"Greka has two options," adds Naik. "Either pay us immediately or the court can sell its rigs." Petropath claims Greka owes it Rs3.6cr ($600,000) for drilling fluids and chemicals supplied while Greka was executing a $65m contract for Essar, won in September 2014.

Despite the favourable court order, Naik says he wrote to Greka chairman Randeep Grewal twice this month (June) with an option to pay so the rigs aren't seized. "Grewal didn't respond," says Naik.

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