India?s first offshore rig faces delay

The construction of the first indigenous offshore drilling rig in India is likely to be delayed as Mumbai-based Bharati Shipyard may not be able to build and deliver the jack-up rig by the scheduled month of April 2009. As part of its foray into the offshore space, Bharati Shipyard is planning to build the rig at its proposed Mangalore shipyard. But the shipyard facility is not ready and, judging by the pace of work, the company will not be able to deliver the rig in time.

Great Offshore had placed the order for the rig with Bharati Shipyard and, based on the delivery date, the company clinched a five-year contract from ONGC for deploying it. The ONGC contract is slated to commence on or before May 2009.

Bharati Shipyard?s managing director Vijay Kumar said the project was on track and the company would be able to deliver the rig in time. “We have tied up with US-based drilling major Le Tourneau Inc for sourcing designs and basic equipment for the rig,” said Kumar. “Moreover, we are the first company to undertake rig construction for other international projects,” he added.

Industry sources however point out that established players in offshore rig construction take 18-24 months to build a rig under ideal conditions and that, for a fresh player, it is not possible to deliver the rig in so short a period. Any delay would adversely impact the E&P (exploration and production) activities of ONGC and expansion plans of Great Offshore.