Private sector drillers are more efficient than ONGC

Vol 8, PW 6 (16 Jun 04) Exploration & Production

Private sector drilling companies wont be surprised to hear that ONGC has at last admitted they are more efficient than its own drilling arm.

Damning evidence in an internal ONGC report seen by PETROWATCH illustrates why the corporation would be well advised to embark on a radical overhaul of its archaic and dysfunctional drilling division. Submitted to management in April, the 50-page report entitled Productivity of Drilling Operations in the Western Offshore is a comparative performance study of ONGCs own rigs against rigs hired from the private sector.

Data from 119 wells drilled in the western offshore between April 2001 and December 2003 was used to prepare the study. Written by ONGCs Corporate Industrial Engineering Group, the study covers both exploratory and development drilling and is designed to identify factors and suggest measures to improve the productivity of drilling operations.

Not only does the report conclude that private sector drillers are more efficient in every area of operation, it also shatters several ONGC myths about why its drilling arm performs so atrociously. Take the assumption that old rigs are to blame for ONGCs low performance.

Not true. An ONGC-owned rig is on average 19 years old but a hired rig is 25 years old.

The performance of hired rigs in terms of cycle speed, commercial speed, work over index and number of wells completed per rig year are consistently and considerably higher than our own rigs for the period under study, reveals ONGC. Delays in well completion time are considerably higher with ONGC rigs while hired rigs often complete jobs before schedule.

Read on.