Megha and Drillmec win 27 land rig ONGC contract

Vol 22, PW 15 (16 May 19) Exploration & Production

Hyderabad-headquartered Megha Engineering & Infrastructures is poised to win a massive ONGC contract for 27 onland drilling rigs.

Last week ONGC opened the price bid submitted by Megha and Italian partner and rig manufacturer Drillmec in its tender to buy rigs to discover they quoted $550m - around $135m lower than its internal budget of $685m or $25m per rig. Other bidders were Bharat Heavy Electricals with US-based NOV and China's CPTDC in association with oilfield service provider Schlumberger.

BHEL's price, according to an ONGC source, was higher than Megha's while the bid submitted by CPTDC was disqualified on technical grounds before price bids were opened. Megha could only qualify to bid following its acquisition of Drillmec from Italy's Trevi Group, announced on January 15, 2019.

"Megha has hit the jackpot!" says a source. "It bought Drillmec for less than $200m and has won a project worth more than $500m."

Megha sources tell us ONGC is yet to "invite" it to collect the LoA. "Megha quoted at least 50% local content in its bid," adds a source close to the company.

"That's why it could quote so low. Let's see if it can actually deliver the rigs from the Kakinada facility."

Last year (2018) Megha bought a stake in the joint venture of Drillmec and Kakinada Marine & Offshore Complex which set up a facility at Kakinada in Andhra Pradesh to manufacture land rigs in India in 2011.