Huge interest at ONGC pre-bid for 27 new rigs

Vol 22, PW 1 (18 Oct 18) Exploration & Production

As expected ONGC's tender to buy 27 onland drilling rigs has attracted huge interest.

Ten rig manufacturers and six agents attended the pre-bid meeting at ONGC's office in Delhi on October 11: BOMCO, Drillmec, NOV, Bharat Heavy Electricals, MHWirth, Bentec, SJ Petroleum Machinery, Schlumberger, Herrenknecht and Precision Drilling plus agents Jubilant Enpro, Dehradun-based Sara Sae, Chinese firm AHCOF, US company Caterpillar, Mumbai-based Sparta Oil Tools and Minerva. "In total bidders asked ONGC around 500 questions," we hear.

"Schlumberger, NOV and Bentec asked most of the questions." Among the most pointed requests was from MHWirth, SJ Petroleum, Schlumberger, Herrenknecht, Jubilant and Minerva who asked ONGC to accept a less stringent steel quality PSL-1 certificate over a more stringent PSL-2 certificate demanded in the tender. In India, they argue, most rigs are made using less stringent PSL-1 certified grade steel.

Another key request was that ONGC release 80% of the final agreed payment for the rig instead of 70% offered in the tender on presentation of FoB documents proving delivery. As of now, ONGC is promising to pay the remaining 30% one month after the rig is commissioned.

"ONGC said it would consider that demand (for 80%)," a potential bidder tells us. "NOV asked for 90% advance; Schlumberger suggested ONGC pay 20% in advance when issuing the LoA, 20% after approving the rig drawings, 20% on presentation of documents showing rig delivery and in stages after that."