All eyes on Cairn deadline for KG contract

Vol 20, PW 21 (13 Jul 17) News in Brief
     

All eyes are on Cairn India's latest July 14 deadline to see which contractors will respond to an unprecedented 'end-to-end' tender to explore and develop prospective shallow water block KG-OSN-2009/3.

"Cairn originally wanted bids by June 15," says a source. "Then they postponed it to July 4; I hope there won't be another extension." Expected to bid are Schlumberger, Halliburton, GE, Weatherford, SapuraKencana and Noble Energy - all attended a pre-bid in Delhi on May 22.

Cairn wants whoever wins to handle exploration drilling, G&G services, well completion, well testing and the development of facilities to process and evacuate hydrocarbons in the event of a discovery. "What we are offering is like an EPC contract," acting Cairn chief Sudhir Mathur told this report, on the sidelines of the Delhi launch of the Open Acreage Licensing Policy and National Data Repository on June 28.

"It's not that we want service providers to spend money first; we'll make payments as work progresses." Cairn owner Vedanta believes KG-OSN-2009/3 holds a resource base of 1bn barrels.