BHEL Bags Refurbishment & Upgrading Contract for ONGS Onshore Rigs

Bharat Heavy Electricals Limited (BHEL) has secured another contract for refurbishment and upgrading of onshore Drilling rigs and supply of new rig equipment from India's premier upstream oil company, Oil and Natural Gas Corporation Limited ONGC.

Valued at over Rs.506 Crore, this is the 4th major order awarded to BHEL by ONGC under their program of refurbishment and upgrading of ageing rigs with state of the art technology and is a testimony to the customer's confidence in BHELs capabilities and technological excellence.

The order envisages refurbishment and upgrading of 12 onshore Drilling rigs as well as supply of new rig equipment. These rigs were procured by ONGC in the 1970s and 1980s. Of these 12 rigs, nine were supplied by BHEL while the rest were supplied by American companies.

The scope of work under this contract involves NDT, repair and replacement of structural members of mast and substructure, overhauling of rotating and hoisting equipment, revamping electrical systems and site erection and commissioning of these equipment.

BHEL has established facilities and a dedicated group of expert engineers for carrying out refurbishment and upgrading of onshore Drilling rigs. For the above contract, the mechanical jobs will be done by BHELs Hyderabad plant, while the electrical jobs will be undertaken by the company's Bhopal plant.

BHEL is the leading manufacturer of onshore drilling rigs in the country, having supplied 84 rigs so far. Of these, 71 rigs have been supplied to ONGC and 13 to Oil India Limited OIL.

Aimed at enhancing value for customers in the oil sector, BHEL has also recently designed for the first time a higher rating 1430 kVA Brushless Alternator for oil rig application against an order from ONGC. The alternator will offer self start facility in rigs located in remote areas which was not possible in the existing 1215 kVA alternators.

Earlier, in the face of stiff competition under International Competitive Bidding ICB, BHEL had won the single largest long term rate contract from ONGC for the supply of Well Head assemblies, Christmas Tree Valves and other critical spares/accessories used in oil exploration. Significantly, with an over 90 percent share, BHEL is the market leader in Well Heads and Xmas Tree equipment in the country.

As a result of increased customer focus and renewed efforts for entry into new business areas, BHELs Industry Sector business segment recorded an all time high order inflow of Rs.7,860 Crore in the last fiscal 2007-08 an increase of 20 percent over the previous year.