ONGC places Rs850 crore order for Jindal Drilling's rigs

03 November 2008

D P Jindal Group offshore oil and gas drilling equipment provider Jindal Drilling and Industries today said it had received a three-year Rs850-crore rig-leasing order from ONGC.

According to Jindal Drilling, ONGC will charter hire the drilling unit Noble George McLeod for three years, which will be deployed next month, though the contract is effective from 15 October.

Jindal Drilling presently operates two 350-ft jack-up cantilever B class jack-up rigs Noble Ed Holt and Noble Charlie Yester.

Noble Charlie Yester is currently under construction at Keppel Fels, Singapore, by Virtue Drilling Pte Ltd. (VDPL) and   has been contracted to ONGC for the current order. Jindal Drilling had acquired a 49-per cent stake from sister concern Jindal Pipes Ltd in VDPL in March 2008 for Rs40 crore.

The other jack-up rig Noble Ed Holt by Jindal Drilling's Singapore-based joint venture Discovery Drilling Pte Ltd, and also constructed by Keppel Fels, was delivered on 12 September 2008 and was leased out to ONGC last month for Rs810 crore ($165-million ).

Both the rigs have been contracted to ONGC and Jindal Drilling will be acting as contractor for these rigs.