It was to begin operations from May 14, 2009.
“There has been a delay in the delivery of the jack-up rig,” Great Offshore said. “Efforts are under way with the help of all the stakeholders to minimize the consequences of this delay.”
A spokesman for Great Offshore also declined to give a cause or share information of the contract regarding penalties and other consequences for non-delivery of the rig on schedule. He also refused to say for how long the construction has been postponed, or if the company has sought an extension from ONGC to deliver the rig.
Shipping industry executives familiar with contracts involving ONGC say the oil firm typically incorporates clauses that let it to cancel a pact if the other party does not stick to deadlines.
Failure to fulfill with delivery dates also attracts a two-year exclusion from taking part in the oil explorer’s future tenders.
On its part, Great Offshore can look for an extension to the delivery date, or pay a penalty and get the date extended. But it may not be that easy.
“It was an open tendering process. If Great Offshore fails to give the rig on time to ONGC, others who participated in the auction are not going to keep quiet,” said an industry executive.
The holdup in constructing the rig may upset the local shipbuilding industry, which is trying to move up the value chain by building sophisticated off-shore vessels and contend with established players.
