ONGC awards 5yr contract to Jindal Drilling

Q: Can you give us some details for the charter hire of Noble Ed-holt from ONGC. Is that done recently?

A: Last week, we were awarded this contract by ONGC. It is for a period of five years and the day rate is in the range of Rs 75,000. Hence, the contract would be operational in next two months. So after the de-hiring of the rig it will be redeployed again.

Q: What is the total value of the contract at? By when does it start getting deployed?

A: It will be deployed in next two months. The total volume, on account of this tender, would be close to around Rs 635 crore, which will be stretched out over a period of five years. The company's order book is close to Rs 2,800 crore.

Q: What does it add to your FY11 order book outlook?

A: At the moment, we have all the rigs deployed. However, one of my rig is coming up for renewal in the month of January 2010. It is also expected to be finalised in next two months. Other than that, all our assets are completely deployed. We are hopeful of getting that rig contract renewed. Assuming that we will be successful to get that, our order book will be in the range of around Rs 1,200 crore for the next year.

Q: Given the kind of rig prices you are working with, what is the annual run rate for revenues?

A: This year, we expect to finish at around Rs 1,300 crore turnover as a topline and around Rs 60 crore as a bottomline.

Q: What about next year?

A: Next year it will close to around Rs 1,200 crore as a topline and the bottomline is expected to remain around Rs 55 crore.