Mumbai, Aug. 3 -- Jindal Drilling and Industries Limited (JDIL) has received a notification of award from Oil & Natural Gas Corporation Limited (ONGC) for the deployment of the jackup rig Jindal Pioneer for a period of three years at an Effective Day Rate of Rs 4.58 mn, equivalent to USD 47,893.99. The company reported that the rig is currently under refurbishment and that the contract is expected to commence in the third quarter of fiscal year 27. The award was disclosed to stock exchanges in line with regulatory requirements.
The contract has been awarded by a domestic entity and JDIL stated that neither the promoter nor group companies have any interest in the contracting entity. The company further indicated that the order does not constitute a related party transaction. The notification sets out an Effective Day Rate of Rs 4,583,215.16 per day for the three year period.
JDIL said the award will support utilisation of the rig once refurbishment is completed and will provide revenue visibility over the contract period. The firm noted the arrangement involves deployment of the rig on an EDR basis and that operational commencement is contingent on completion of refurbishment and mobilisation. Management provided the details pursuant to the Master Circular under SEBI Listing Regulations. The company added that the deployment terms and day rate were set out in the award documentation.
The disclosure fulfils the obligations for material events and significant developments as required by applicable listing rules. JDIL provided the notification reference as part of its corporate filings with the BSE and the National Stock Exchange. Market participants may regard the contract as a near term commercial engagement for the rig. The filing included an annexure detailing the terms and confirming absence of related party interest.
Published by HT Digital Content Services with permission from Construction World.