Chennai, March 4
SAAG-RR Infra Ltd intends to form a joint venture special purpose vehicle for purchasing two workover rigs, the company's Managing Director, Mr R. Sriram, told
Business Lineon Saturday.
The Chennai-based company's Malaysian parent, SAAG Consolidated (M) Berhard, and an Indian financing company would be co-promoters of the SPV, Mr Sriram said. He did not want to name the financing company, pending signing of a formal MoU.
The SPV will buy at least two workover rigs rigs that sit on a producing oil well and do various kinds of repairs, to increase oil production from the well.
SAAG-RR Infra recently signed a formal agreement with its parent company for transfer of technology for doing work over operations. SAAG Consolidated of Malaysia is understood to be an established player in workover operations. Incidentally, the company won last week a contract from ExxonMobil for `providing workover rig equipment and services' to the oil major. SAAG Consolidated also has facilities to build workover rigs in Malaysia.
SAAG-RR desires to piggy-ride on its Malaysian parent's expertise and backing and win contracts from ONGC, which has over 800 wells just in the Bombay High region, most of which require repair work. With the accent on increasing indigenous production, it is expected that ONGC will require workover services on a large scale a prospect for which SAAG-RR is readying itself.