Reliance does not want to share drilling rigs with ONGC

Vol 10, PW 18 (11 Jan 07) People & Policy

Don’t be misled by reports that Reliance Industries is about to share its drilling rigs with ONGC to beat the global shortage of rigs and services.

Even if ONGC welcomes the idea, Reliance opposes it. “It is most unlikely that we will share rigs with ONGC,â€‌ Reliance tells PETROWATCH.

“Our working styles are extremely different. At Reliance we take quick decisions but ONGC is still bogged down in bureaucracy and red tape.

â€‌ Reliance believes rig and services sharing can work only between companies with small work programmes and drilling commitments. “Reliance and ONGC have large work programmes,â€‌ we are told.

“It makes sense for us to hire our own rigs.â€‌ Reliance, ONGC and other upstream companies operating in India are part of a DGH initiative to pool rigs and services.

This initiative is being co-ordinated for the DGH by Rig Management Norway – part of Norway’s state-owned Statoil – which held meetings with upstream operators in India over the past few months before preparing a report on the global availability of drilling rigs. Bigger companies like ONGC and Reliance each contributed $20,000 to be part of this effort while smaller companies paid $10,000.

In November Rig Management Norway submitted its report on global rig availability. Reliance, ONGC and Italy’s ENI were part of a meeting held in Mumbai on 20th December to gauge each other’s rig requirements for the eastern offshore deep waters.

“Everybody presented their points of view and data.â€‌ Another meeting is scheduled in Delhi on 11th January to exchange notes on drilling and service requirements.