BHP and GVK argue over seismic

Vol 13, PW 14 (17 Dec 09) News in Brief

Australia’s BHP Billiton and the Hyderabad-based GVK Group are in disagreement over the award of a contract to acquire up to 10,000-lkm 2D across six deepwater NELP-VII western offshore blocks.

GVK holds a 74% stake but BHP with its 26% stake operates the blocks and has control. “GVK thinks that as it pays most of the costs,â€‌ says an industry source, “it should have at least an equal voice in the decision-making.

But BHP says that it has the technical expertise to properly decide.â€‌ Schlumberger subsidiary WesternGeco is widely expected to win the tender but has been waiting for a Letter of Intent (LoI) for several months.

“WesternGeco is the only contractor,â€‌ we hear, “to have successfully used the â€کOver/Under’ (seismic acquisition method) and will definitely win the contract.â€‌ Whatever their disagreements, both BHP and GVK believe the â€کOver/Under’ method produces the best images of geological formations under basalt rocks.

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