Oil India extends 3000-hp deadline - again
Oil India is testing the patience of bidders after extending the bid deadline in its 3000-hp rig tender yet again, this time to October 12 (2023).
Houston-based Nabors Drilling, Gurgaon-based Quippo Oil & Gas and Aban Offshore are among the potential bidders. "Day rates could be higher than $65,000, making this a very high-value tender," says a source.
"But nobody is interested in bidding unless there is certainty from Oil India." For one thing, there is no 3000-hp rig available in India, nor is it freely available anywhere in the world to bring to India.
"Now bidders are growing tired that it is not working out," says a source close to Nabors when asked if the Houston-based 3000-hp rig specialist is interested in bidding. Quippo is said to be losing interest after trying to acquire 3000-hp rigs for Oil India twice under earlier cancelled tenders.
Not just tired, but bidders are increasingly worried about a tender clause which allows Oil India to terminate the contract for no reason with 30 days' notice. "This is a dangerous clause," we hear.
"Who will invest millions and come to Assam if things can go so wrong? Such clauses are not there globally; if they are, then additional clauses protect the contractor." There is also speculation Oil India might change several tender conditions in response to Nabors' complaints.
Yet that might be difficult because some accuse Oil India of supporting Nabors to win the contract. According to another industry source, Nabors has four 3000-hp rigs deployed worldwide; Quippo has a new Chinese-made rig in Indonesia, while Aban has worked with 3000-hp rigs.
Represented by the Kabir Lulla-led Askara Group, Nabors has progressively scaled down its operations in India over the last two years. Oil India published the latest 3000-hp rig tender on July 14 (2023) with an August 29 (2023) bid deadline, later extended to September 12 (2023), then September 26 (2023) and now to October 12 (2023).
This is Oil India's fourth attempt at hiring the rig after it cancelled the last tender on May 4 (2023), 18 months after inviting offers on October 22 (2021).