Financial Daily from THE HINDU group of publications
Sunday, Mar 05, 2006


Group Sites

Corporate - Alliances & Joint Ventures

SAAG-RR Infra to form SPV to buy workover rigs

M. Ramesh

Chennai , March 4

SAAG-RR Infra Ltd intends to form a joint venture special purpose vehicle for purchasing two workover rigs, the company's Managing Director, Mr R. Sriram, told Business Line on Saturday.

The Chennai-based company's Malaysian parent, SAAG Consolidated (M) Berhard, and an Indian financing company would be co-promoters of the SPV, Mr Sriram said. He did not want to name the financing company, pending signing of a formal MoU.

The SPV will buy at least two workover rigs — rigs that sit on a producing oil well and do various kinds of repairs, to increase oil production from the well.

SAAG-RR Infra recently signed a formal agreement with its parent company for transfer of technology for doing work over operations. SAAG Consolidated of Malaysia is understood to be an established player in workover operations. Incidentally, the company won last week a contract from ExxonMobil for `providing workover rig equipment and services' to the oil major. SAAG Consolidated also has facilities to build workover rigs in Malaysia.

SAAG-RR desires to piggy-ride on its Malaysian parent's expertise and backing and win contracts from ONGC, which has over 800 wells just in the Bombay High region, most of which require repair work. With the accent on increasing indigenous production, it is expected that ONGC will require workover services on a large scale — a prospect for which SAAG-RR is readying itself.

More Stories on : Alliances & Joint Ventures | Infrastructure

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dubai's Emaar to enter healthcare

Birla Group terms Tatas' notice as `malafide'
Birla will case: HC directive on gold coins
`Unwarranted' tax to be returned
Pennar board clears debenture issue
ONGC clears MRPL upgradation project
Cabinet clears SCI's jt venture investment proposal
SAAG-RR Infra to form SPV to buy workover rigs
India to emerge a big player in carbon credits market
Cos raise $3.5b in 2 months — Placement of shares/bonds overseas

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line