Oil India deadline in 5-rig tender

Vol 25, PW 4 (27 Jan 22) News in Brief

Oil India has set a January 31 (2022) deadline for clarifications on queries to bidders in its ongoing tender to buy five 2000-hp capacity onland drilling rigs.

By the extended December 1 (2021) deadline, Oil India received bids from Hyderabad-based Drillmec-Megha Engineering, state-owned Bharat Heavy Electricals (BHEL) and Germany's Bentec Drilling & Oilfield Systems. Around January 12, Oil India sent out the first round of commercial and technical queries to the bidders.

"These are routine queries," we hear. Still unclear is if Oil India will send around the second round of questions.

"Unlike ONGC, there's usually no second round of queries from Oil India," says a bidder. "But sometimes they do send a second-round of queries and expect a response within a day or so."

But as the tender is already delayed by a year, he adds that a few more days are unlikely to make much difference. "I hope Oil India opens the price bids soon."

This is the second edition of Oil India's five-rig purchase tender. BHEL, Drillmec and Bentec bid in October 2020 in the first tender later scrapped by Oil India after it found issues with the documents submitted by all bidders.

Going by Oil India's specifications, each rig is likely to cost $25m, taking the value of the contract to $125m.