Deep hits back at Arrow and Great Eastern

Vol 13, PW 14 (17 Dec 09) People & Policy

Deep Industries has hit back at rival CBM operators Arrow Energy and Great Eastern for trying to block the award of seven out of 10 blocks in CBM-IV where it emerged best bidder.

“It is very unfortunate that Arrow and Great Eastern have chosen to indulge in character assassination,â€‌ Deep owner and managing director Rupesh Savla tells PETROWATCH. “We did not win with any tricks or by making a â€کmockery’ of the system.

Do you think in this day and age it is possible to fool the Government of Indiaâ€‌ Instead, Savla accuses Arrow of manipulating the system by submitting misleading figures in its bids. According to Savla, Arrow quoted 65,000-sq km acreage.

But that, he says, is the combined acreage of all Arrow subsidiaries, not of the parent company. This, stresses Savla, violates the Notice Inviting Offer (NIO).

Savla adds that Arrow has also shown some of its Australian blocks where it has only the Authority to Prospect (ATP), and not full Petroleum Exploration Licences (PELs), which he claims is another violation. More, Savla jumps on an obvious typo in Arrow’s bid when it quoted $14 only as the drilling cost of 27 coreholes.

“Arrow isn’t even serious about filling in the bid form!â€‌ says Savla. “Its tentative development plan is missing and infrastructure facilities for gas utilisation aren’t even mentioned.

â€‌ Savla further dismisses Great Eastern’s allegations that Deep’s work programme is based on â€کridiculously’ low cost estimates. “I could just as easily say Great Eastern’s cost estimates are ridiculously high!â€‌ he counters.

Savla defends Deep’s Production Linked Payment (PLP) offer to the government saying it is based on a mathematical formula. Finally, Savla dismisses Great Eastern chief Prashant Modi’s disclosure that Deep’s owners are mired in court cases by reminding Modi of his Swedish-related misadventures in London.

“Bids are evaluated on a points-based system,â€‌ says Savla. “Not on whether the company promoter is facing litigation.