GAIL wants Rajasthan rig

Vol 14, PW 1 (01 Jul 10) News in Brief

GAIL wants to hire an onland drilling rig that can be mobilised to its 4613-sq km NELP-VI exploration block RJ-ONN-2004/1 in Rajasthan around November or December this year.

PETROWATCH learns GAIL issued a ‘global’ tender on June 26 for a 1000-hp rig to drill the first three of six Phase-I commitment exploration wells. The pre-bid is scheduled for July 5 at GAIL’s Noida office and technical bids will be opened on July 26.

Unclear is when price bids will be opened. “We will take around two months to evaluate bids,” says GAIL.

Drillers say GAIL can expect strong competition in this tender, as many rigs are sitting idle. In India, rates for a 1000-hp rig are less than $10,000/day at present but drillers could offer even lower rates to win a contract.

GAIL (22.225%) partners GSPC (22.225%), HPCL (22.22%), BPCL (11.11%), Hallworthy Shipping (11.11%) and Nitin Fire Protection Systems (11.11%) at RJ-ONN-2004/1. Phase-I runs till November 5, 2011.

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