Oil firms face shortage of drilling rigs: Assocham

Oil firms face shortage of drilling rigs: Assocham
PTI
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First Published: Fri, May 15 2009. 06 13 PM IST
Updated: Fri, May 15 2009. 06 13 PM IST
New Delhi: Shortage of drilling rigs and skilled personnel has caused delays in schedule of hydrocarbons’ discovery by oil firms and this could lead to 20% rise in India’s crude imports, says a study.
“Mismatch between demand of drilling rigs and supplies on one hand and shortages of skilled personnel against their demand for oil and gas exploration if not addressed urgently, India’s crude import will go up by 20%,” the study by industry body Assocham said.
The shortage has resulted in inordinate delays in hydrocarbon discovery schedule, it added.
Currently, about 70% of India’s petroleum, oil and lubricant requirements are met through imports which might go up to 90% by 2010, it said.
India’s oil imports in 2008-09 were 16.9% higher at $93.17 billion over $79.71 billion in 2007-08.
Rigs demand have risen globally in response to relatively high energy prices and Indian exploration and production companies are facing shortages to the extent of over 60%, the chamber said.
Over 145 offshore rigs were on order or under construction until recently compared to just 29 in April 2005, it added. “Fabrication yards that make rigs are running backlogs and some of the reputed yards are booked with orders till 2010.”
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First Published: Fri, May 15 2009. 06 13 PM IST
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