Nine firms bid in ONGC tender for 22 workover rigs

Vol 11, PW 10 (20 Sep 07) Exploration & Production

ONGC has begun evaluating technical bids for its biggest ever tender for workover rigs, in an effort to revive â€کsick’ onshore wells in Gujarat, Assam and the KG onshore basin in Andhra Pradesh.

PETROWATCH learns nine companies submitted technical bids for 22 workover rigs by the September 6 deadline: Aakash Exploration, Deep Industries, Dewanchand Ramsaran, Sitaram Logistics, Shiv-Vani, John Energy, Quipo, Globe Transport and MB Petroleum. One analyst is scathing about some of the bidders.

“Sitaram Logistics and Globe Transport are transport companies,â€‌ he said. “These days everybody wants to get into the drilling business.

McDonalds or Dominos Pizza might bid in the next tender.â€‌ Bidders don’t expect ONGC to finalise the tender anytime soon.

“Knowing the way ONGC works,â€‌ says one, “you can expect this thing to go on for another three to four months. First they will evaluate technical bids and send queries and then give a date to submit price bids.

â€‌ ONGC, however, is more optimistic. “We are working to schedule,â€‌ says a company source, “and hope to finalise the contract by the first week of November or even before.

â€‌ ONGC wants to hire rigs for workover operations at its onshore blocks at Ahmedabad, Ankleshwar, Rajahmundry, Karaikal and Jorhat, where in some cases it has been producing from the same wells for 40 years. John Energy, Sitaram Logistics and Deep Industries have offered nine rigs each; MB Petroleum of Oman has offered eight; Globe Transport has offered seven; Dewanchand Ramsaran four; Aakash Exploration two; while Shiv Vani and Quipo have offered the maximum of 12 rigs each.

Contractors tell us the average day rate for workover rigs in India is around $10,000 per day. ONGC wants bids to be valid for 120 days and the rigs mobilised in 210 days from the date of award.

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