New Delhi, Jan. 14 (PTI): State-owned engineering firm Bhel is planning to revive its oil rig business. The company is scouting for partners for the venture.
We have some facilities in Hyderabad and may require investments of up to Rs 40 crore to renovate the facility, Bhel CMD Ashok K. Puri said.
On the possible partners, he said: We are looking for good partners and have initiated talks with some companies for a possible tie-up.
Bhel entered the rig manufacturing business 25 years ago and had supplied rigs to companies like ONGC and Oil India Ltd, he said and added that the rigs were also sent to Bhel for renovation.
Puri said funds for reviving the oil rig business was part of its Rs 3,200 crore investment during the 11th Five Year Plan.
Asked about the potential of the rig business in India, he said it was Rs 300-400 crore annually and if exports were taken into consideration, the business could go up to Rs 1,000 crore.
A team has been constituted by the company to prepare a feasibility report on this and the same would be placed before the board of directors soon, he added.
Asked whether the new facilities for manufacturing oil rigs would be created, Puri said a final decision would be taken only after completion of the feasibility report.