Page 63 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : HALLIBURTON OFFSHORE SERVICES INC. (LIH) 277
CONTRACTOR also to provide Drill water, Pot-water etc. for
rigs, AHTSVs, PT/and other OPERATOR’S vessels as per
Scope of Work. Vessels also have to carry HFHSD (free issue
item by OPERATOR) for rigs from shore base.
(vii) Subsea Well Heads, Running Tools including drill ahead tool
and services including Service Engineer.
(viii) Liner Hanger Service along with crew.
(ix) Miscellaneous Services like Coring (with Core Barrel & Core
head), Casing & tubular running, Torque Turn (for premium
casings & tubing up to 14” including tubing & landing string
during completion), Hole openers, Under-reamers, Multiple
Activation Circulating Bypass Tool (MACB), casing cutting &
Fishing Tools, H2S equipment, 7” casing clean-out string and
other tubular strings, odd size special drill bits, scrappers etc.
(x) Capable and experienced services crew at Rig/Base personnel
as per List of (Crew) Personnel and scope.
(xi) It shall be responsibility of CONTRACTOR to provide any
cross-overs between its tools and drill stems of various rigs for
which CONTRACTOR shall coordinate with Rig Contractors.
(xii) It shall be responsibility of CONTRACTOR to provide any
items/equipment for making its units of various services/
equipment compatible with the rig power supply for which
CONTRACTOR shall interact with the Rig Contractor for
timely mobilization and commencement of services.
(xiii) It shall be responsibility of the CONTRACTOR to provide
compatible units as per zonal requirements of Rig Safety like
Zone 0, Zone 1 etc. and rig electrical supply.
(xiv) To take-up the job in accordance with the various articles and
Schedule of Responsibilities.”
3.6 While performing the aforesaid services, at certain instances the
equipment/tools used by the Applicant for supplying oilfield services get
stuck/lost/damaged due to uncontrollable or unforeseen down hole environ-
mental situations in the oil and gas well and might not be retrievable. In such
cases, the Querist receives reimbursement from the Customer towards such LIH
equipment in terms of Clause 31 of the Contract entered by the Applicant with
ONGC which reads as under :
“31.0 Loss or damage to CONTRACTOR'S down hole equipment
OPERATOR shall reimburse CONTRACTOR for loss of or damage to
CONTRACTORS down hole equipment, as under, provided that such loss
or damage is not occasioned by normal wear and tear or negligence on the
part of the CONTRACTOR or due to defective material.
(a) In the case of CONTRACTORS down hole equipment being
damaged, Operator shall reimburse CONTRACTOR such re-
pair cost, provided however, that OPERATOR shall not be re-
quired to reimburse CONTRACTOR any amount greater than
that which would have been due had such equipment been
lost and, therefore, calculated under sub-section (b) hereinbe-
low :-
(b) In the case of CONTRACTOR’S down hole equipment being
lost, OPERATOR will reimburse CONTRACTOR an amount
limited to the original cost (F.O.B. nearest port) reduced by
depreciation at the rate of 10% per year to be proportioned for
each completed month or part thereof from the date of pur-
chase of the lost equipment/tool subject to maximum depreci-
GST LAW TIMES  20th August 2020  63