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ONGC cancels Great Offshore’s oil rig deal

ONGC cancels Great Offshore’s oil rig deal
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First Published: Fri, May 15 2009. 10 40 PM IST
Updated: Fri, May 15 2009. 10 40 PM IST
Bangalore: State-owned Oil and Natural Gas Corp. Ltd has ended a five-year, $266-million (around Rs1,320 crore) contract to hire a shallow water oil rig from Great Offshore Ltd, an official of the oil explorer said on Friday.
On Thursday, ONGC encashed a bank guarantee of Great Offshore worth Rs19 crore since the latter failed to deliver the rig that was to start work on 15 May.
“A performance bank guarantee is for performing. If it is encashed, it means that Great Offshore has not performed. That means there is no contract,” the official working at ONGC’s drilling unit said on condition of anonymity.
A spokesman for Great Offshore confirmed the encashment of the bank guarantee.
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First Published: Fri, May 15 2009. 10 40 PM IST