BHEL eyes Rs 680 cr rig order from ONGC
BHEL, which has already secured orders worth over Rs 600 crore from ONGC for refurbishing and modernisation of 15 rigs.
By PTI |
New Delhi: State-run Bharat Heavy Electricals Ltd, which is making a re-entry into oil rig manufacturing business, is hoping to bag its first major order from Oil and Natural Gas Corp (ONGC) worth about Rs 680 crore.
"ONGC is looking for 10-20 rigs for onland drilling. We are in discussions with them and expect an order of 10 rigs in the first phase," BHEL Director (industrial systems and products) A K Mathur told reporters here.
BHEL, which has already secured orders worth over Rs 600 crore from ONGC for refurbishing and modernisation of 15 rigs, is expecting a business of about Rs 680 crore by end-2007 from manufacturing new rigs.
"We have been in oil rig manufacturing business long time back. We had, in fact, supplied some 70 rigs to ONGC but with the flagship firm's focus shifting from owning the rig to leasing, BHEL didn't get much business. Now with the global rig scarcity, ONGC is again looking at having its own rigs manufactured," he said.
Oil rigs would be manufactured at BHEL's Hyderabad plant that has a capacity to build 6-7 rigs in a year.
"We are talking to ONGC about rig specifications. This may take about six months but we expect first orders before the end of the current calender year," Mathur said.
BHEL chairman and managing director Ashok K Puri had in January told PTI the Hyderabad rig manufacturing and renovation facility may need about Rs 40 crore investment to revive the business.
Puri had said BHEL was in talks with some companies for a possible tie-up for the oil business.
"ONGC is looking for 10-20 rigs for onland drilling. We are in discussions with them and expect an order of 10 rigs in the first phase," BHEL Director (industrial systems and products) A K Mathur told reporters here.
BHEL, which has already secured orders worth over Rs 600 crore from ONGC for refurbishing and modernisation of 15 rigs, is expecting a business of about Rs 680 crore by end-2007 from manufacturing new rigs.
"We have been in oil rig manufacturing business long time back. We had, in fact, supplied some 70 rigs to ONGC but with the flagship firm's focus shifting from owning the rig to leasing, BHEL didn't get much business. Now with the global rig scarcity, ONGC is again looking at having its own rigs manufactured," he said.
Oil rigs would be manufactured at BHEL's Hyderabad plant that has a capacity to build 6-7 rigs in a year.
"We are talking to ONGC about rig specifications. This may take about six months but we expect first orders before the end of the current calender year," Mathur said.
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BHEL chairman and managing director Ashok K Puri had in January told PTI the Hyderabad rig manufacturing and renovation facility may need about Rs 40 crore investment to revive the business.
Puri had said BHEL was in talks with some companies for a possible tie-up for the oil business.
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