Deep denies problems operating Chinese rig
Deep Industries chairman Paras Savla has dismissed industry rumours that it is struggling to operate a 90-tonne rig imported from China for ONGC at its Bokaro CBM asset.
"There was a problem with the rig hydraulics," said Savla when contacted. "The problem will be rectified within three to four days; it took some time for the Chinese technicians to arrive in India due to a delay in securing a visa."
He adds that the technicians have now arrived and will repair the hydraulics. ONGC awarded the contract to Deep on July 12 (2023) for Rs130cr ($15.5m).
Under the contract, ONGC wanted a mobile hydraulic rig equipped with a top drive system and a power system that could drill wells to 1800 metres. Deep bought and imported rig DR#27 from RG Petro-Machinery Group in China, especially for this contract.
Along with supplying the rig, Deep was contracted to provide the workforce to operate the rig. "Since it was a fully automated hydraulic rig, Deep's manpower was not aware of how to operate it," claims an industry source.
But Savla denies this and claims the rig began drilling for ONGC in June 2024 and drilled two to three wells before the hydraulics gave in. According to an ONGC email sent on August 30 (2024) and seen by this report, it has been asking Deep to rectify problems with the rig since June 13 (2024).
"ONGC is incurring heavy costs and losses due to delayed operations/deficiencies," reads the email. "It is requested once again to resolve the issues urgently; otherwise, ONGC will have no option but to terminate the contract and take further actions as per the contract T&Cs (terms and conditions)."
ONGC's email adds that it serves as a 30-day notice. Deep was meant to respond by September 30 (2024).
However, according to a source, ONGC extended that until November 30 (2024) at Deep's request.