Citing a global crunch in supply of rigs, Mukesh Ambani-controlled Reliance Industries has sought a three-year break from drilling in nine of the deepsea exploration blocks it has won in the government's acreage auctions. The move is aimed at getting a breather against penalties for falling short of the work target given to the government, reports ToI.

"Global scarcity (of deepwater drilling rigs) has had a significant impact on RIL's drilling operations," company CEO (petroleum) PMS Prasad has said in a letter to oil secretary M S Srinivasan. He said the Directorate General of Hydrocarbons' policy of merging exploration phases to tide over shortage of rigs was inadequate. "Merging of exploration phase proposes only a short-term solution as it amasses the work commitment into the second and fourth phase and does not provide respite to the contractor over the long-term."

Sources said the global rush for exploring the frontier depths of 3,000 metres and below has suddenly created a crunch in rigs. Rents too have soared beyond $ 500,000 a day as producers ramp up exploration spending and compete for the few of the specialised units available. As a result, US Minerals Management Services recently allowed operators in Gulf of Mexico extensions and other similar reliefs. In India too, many companies have sought "extension" of their work programmes. Companies also seek such reliefs when they do not get clearances on time or their work is affected by adverse weather conditions. "To that extent, a holiday or an extension are the same thing," one industry source said.

The shortage has spurred discussion in the government on pooling of rigs hired by different explorers. The idea is that when a rig hired by one company is not being used, it can be used by another firm. The issue, however, has been making slow progress as companies differed on who will bear the charges for time the rigs are idling.

Reliance has been facing delays in delivery of its contracted rigs. It had contracted three additional rigs, Expedition, D534 and Neptune, for mobilisation by June 2006, August 2006 and January 2007, respectively, with an additional rig, Blackford Dolphin, slated to join the fleet in October 2007. "Unfortunately, despite having executed the required contracts, which are always subject to availability, the rigs are still not being made available to RIL," Prasad said