Jindal Drilling splits five rigs among directors

Vol 13, PW 15 (14 Jan 10) People & Policy
     

BSE-listed drilling contractor Jindal Drilling is likely to be â€کrestructured’ between the two distantly related sides of the family that run the company.

Jindal Drilling, part of the DP Jindal Group, operates five jack-ups for ONGC on the western offshore, two of which it owns. PETROWATCH learns discussions about the imminent division of responsibility have been going on for two months or more.

Under the terms of the restructuring, managing director NK (Naresh Kumar) Aggarwal and his son Manav would manage two rigs: Jindal-owned Virtue I and Noble-owned Noble Ed Holt. Manav holds an MSc in Management from Lancaster University in the UK and was given the designation of â€کadvisor to the company’ on June 30, 2008.

Twenty-nine-year old Raghav Jindal, meanwhile, son of 59-year old company owner DP Jindal, will manage the other three rigs: Jindal-owned Discovery I, plus Noble Charlie Yester and Noble George McLeod, owned by US-based Noble Drilling. Raghav holds a master’s degree in management from the London School of Economics and has been on the Jindal Drilling board since 1998.

“It is too early to say how things will work in the future,â€‌ we hear. “They have hired a consultant to see how the restructuring should take place.

â€‌ According to a source familiar with the discussions, potential conflict over who will run the company in the future is behind the decision to restructure. “Manav (NK’s son) has been actively involved in the business for years,â€‌ we hear.

“But Raghav (DP’s son) has started taking an active interest in operations also.â€‌ Our source adds that the two families hope to avoid future misunderstandings by looking after separate assets going forward.

Jindal Drilling posted total revenues of Rs783.81cr ($170.5m) during the last fiscal while the DP Jindal Group has annual revenues exceeding $750m.