MODEL CONTRACT FOR CHARTER HIRE OF RIGS (Off-

Shore)
DRILLING AGREEMENT WITH GENERAL TERMS AND CONDITIONS

THIS AGREEMENT made and entered into ____ day of ________, between Oil
and Natural Gas Corporation Limited, incorporated under the Companies Act
1956, having its Registered Office at Pandit Deen Dayal Upadhyaya Urja
Bhawan, 5 Nelson Mendela Marg, Vasant Kunj, New Delhi - 110070, INDIA, and
its _______ [name and address of office to be filled in] (hereinafter referred to
as ‘Operator’, which expression shall include its successors, administrators,
executors and assignees) on the one part and M/s.__________________ a
Company organized and existing under the laws of Company’s Act 1956 having its
Registered Office at _________________________________________
hereinafter referred to as `Contractor', which expression shall include its
successors, administrators, executors and permitted assignees) on the other part.

WITNESSETH

WHEREAS, Operator desires to have drilling operations conducted in the

offshore waters of India, as may be designated by Operator, AND
WHEREAS, Contractor is owner of
"_____________________________________" (hereinafter referred to as
"Drilling Unit") and willing to perform such drilling operations on charter hire
basis with Drilling Unit and its personnel as per Exhibit -___
OR
Contractor has taken on lease the Rig ................... (hereinafter referred to as
'Drilling Unit') from ...................for ...........years sufficient to cover the duration
of this Agreement and willing to perform such drilling operations with the Drilling
Unit and its personnel as per Exhibit '...'. Contractor undertakes to get the lease
period extended if the Agreement is extended to perform the drilling operations
during the extended period.

Whereas, the Contractor confirms that it has the approval No......... dated ........
of the Government of India permitting it to enter into a Joint Venture/Technical
Collaboration for rendering offshore drilling services in India and whereas
the Contractor has entered into an Agreement with
........................................ on ............. (copy enclosed at Exhibit.......) and this
Agreement is subsisting and is valid upto .............. i.e. covering the primary
term of this Agreement for providing sufficient technical/management back up
support for drilling operations under this Agreement.

NOW THEREFORE, in consideration of the mutual covenants and agreements

hereinafter provided, it is hereby agreed as follows:-

1.0 TERM

1.1 COMMENCEMENT DATE

ONGC/MM/03/(1)
The Agreement is effective as of _________ (i.e. date of issue of unconditional
LOA (Letter of Award) / NOA (Notification of Award by Operator), and all
commitments / obligations of the Contractor under this Agreement shall be
operative from this date (i.e. date of issue of unconditional LOA / NOA by
Operator.

The commencement date and time for the purposes of any compensation to
the Contractor under this Agreement, shall start when :-

i. the Drilling Unit, ready in all respects and accepted thereafter by the
Operator and Contractor commences operations at the first drilling
location nominated and made ready in all respects by Operator

Note:
a. “Commencement of Operations” is defined as under:

For Jack up rigs: Drilling operations or workover operations, which

includes lifting of 1st conductor casing for piling operation or
installation of BOP stack or starting of making BHA as the case may
be.

For anchor moored floaters: Drilling unit is ready for running of

anchors. If time taken from running of anchors is more than 48 hours,
the Contractor shall be paid zero rate for any such excess time.

b. Applicable for both Jack-up/ floaters

However, any time lost due to location not being ready shall be paid at Non-
Operating Day Rate.

Or

ii. When the Drilling Unit after acceptance by the Operator is ready to
commence voyage, to the first drilling location, Contractor shall serve on
Operator 5 days written notice of such readiness from nearest harbour or
within a radius of 20 Kms of the harbour. If at the expiry of the notice period,
depending upon availability of AHTSV, (Anchor Handling Tug Supply Vessels),
the Operator has not supplied the AHTSV for the tow (for jack-up) / for
running of anchors (for floaters), the operations shall be deemed to have
commenced from expiry of the notice and Non-Operating Day Rate shall be
payable until Operator supplied AHTSV’s have connected the tow. However,
the cost of the AHTSVs for towing shall be to Contractor’s account.

1.1.1 In case the Drilling Unit is not ready in all respect as provided in 1.1 (i/ii)
above, and the readiness of the Drilling Unit as mentioned above is falling during
the monsoon period, the movement of Drilling Unit will be allowed on the request
of the Contractor by Operator to the 1st location before onset of monsoon subject
to the following conditions:

a. Movement of the Drilling Unit to the first location prior to inspection and
acceptance of the Drilling Unit will be solely at the risk and cost of the Contractor.
ONGC/MM/03/(2)
The operations will commence only after inspection of the Drilling Unit by 3 rd
party and acceptance by Operator as provided under clause No. 1.6.2 and when
the Drilling Unit commences Well operations.

Applicable for Jack up rigs) : Well operations means Drilling operations or

workover operations, which includes lifting of 1st conductor casing for
piling operation or installation of BOP stack or starting of making BHA as
the case may be.

(Applicble for Floaters) : Well operations means Drilling operations or

workover operations, which includes installation of BOP stack or starting of
making BHA as the case may be).

b. Subject to Clause 1.4, after movement of Drilling Unit to 1st designated location
prior to monsoon, if the Contractor fails to commence the operations as per the
Agreement within the stipulated mobilization period, Operator shall have, without
prejudice to any other provision in the contract, the right to terminate the
Agreement irrespective of the onset of the monsoon.

c. Contractor shall procure at its own expense and maintain, with respect to and
from the date Drilling Unit is moved to the designated drilling location or
platform, as the case may be, all insurance policies as described in Clause
No.14 of the Agreement.

d. All costs, expenditure and liability arising out of pollution and contamination due
to the above deployment shall be to the account of the Contractor and Contractor
indemnifies the Operator for the same .

e. Contractor shall be solely responsible for any damage to pipeline/platform due to

any reason and shall indemnify Operator upto an amount of US$ 1 Million.

f. Force Majeure and Arbitration clauses will not be applicable during this period
and till Drilling Unit has commenced its operation as per the terms of the
Agreement.

g. Logistics support (sea/air)/other services like potable water/HSD etc. shall be

provided by Operator, subject to its availability on chargeable basis and
Contractor will be required to make advance payments for such services.

h. Any payment to Contractor shall be due only after the Drilling Unit has
commenced its operation as per the terms of the Agreement.

1.1.2 MOBILIZATION

The Contractor shall mobilize and deploy the Drilling Unit along with crew so as
to commence the operations at the designated first drilling location nominated by
Operator within a period of 180 days from the date of LOA/ NOA from
Operator.

a) Applicable for Contractor(s) offering rigs which are in operation with

ONGC:

ONGC/MM/03/(3)
Immediately after de-hiring from the ongoing contact.

In case such a Drilling Unit is to be repaired/dry docked before deployment

against the new contract, time required for such activity indicated by the
Contractor at the bidding stage will be considered (subject to the maximum
mobilization period of 180 days from the date of de-hiring).

The succeeding day of issue of LOA/NOA shall be counted as Day 1 for the
purposes of Mobilization period.

The rig will be deployed by Operator anywhere in offshore Indian waters.

However, the 1st drilling location will be West Coast / East Coast (to be
incorporated as per requirement) offshore Indian waters.

In case the Drilling Unit is under automatic extension for the completion of Well/
Wells-in-progress under previous contract with ONGC, and / or the mobilization
period of (180) days falls between 16th May and 15th October (for rigs where the
nominated 1st drilling location is in West Coast) / between 16th October and 15th
February (for rigs where the nominated 1st drilling location in East Coast) the
mobilization period of (180) days stands extended upto 15th October and 15th
February respectively.

(The year for the monsoon period as above will be the respective year according
to year of LOA/NOA by which scheduled mobilization date falls).

b) Contractor has agreed to the following schedule and milestones for completing
the mobilization of the Drilling Unit as per the mobilization period of 180 days) :-
i. Modification/up-gradation/ repairs schedule (if any)
ii. Inspection schedule
iii. Towing schedule (if any)

iv. Commencement schedule

A kick-off meeting will be held within 15 days from the date of LOA/ NOA which
the Contractor should attend and submit the schedules alongwith various dates.
After the kick-off meeting Contractor shall submit fortnightly report or any other
report as desired by Operator showing progress in each activities of mobilization.

c) In case the Contractor fails to mobilize and deploy the Drilling Unit
alongwith crew and/or fails to commence operations within the period specified
above, Operator shall have, without prejudice to any other provision in the
contract, including clause 1.4, the right to invoke the performance bond, forfeit
the amount of performance bond and terminate the Agreement. Apart from
termination, Contractor will be put up on holiday of two years as per Clause
No.22.8.1 of model contract conditions.

Applicable only for Class-I –under construction (new generation) Rigs:

The Contractor shall mobilize and deploy the Drilling Unit along with crew so as
to commence the operations at the designated first drilling location nominated by

ONGC/MM/03/(4)
 Operator within a period of 730 days from the date of LOA/ NOA from
Operator.

1.2 EXPIRY DATE

This Agreement shall come to an end if before the expiry of the term of the
Agreement:

(a) The drilling of the last well is completed/terminated or the well is

abandoned and all equipment belonging to Operator or its third parties are off-
loaded and the drilling unit is:-

1. Ready for Jack down

OR
2. Floater is ready for pulling its last anchor

(b) Subject to availability AHTSV shall be provided for towing of rig to

sheltered water or any other demobilisation point, mutually agreed, at
Contractor's cost.

1.3 DURATION

a) Unless extended at the option of Operator, this Agreement shall be for

a firm period of ___years (Primary term) from Commencement of operations as
defined under clause 1.1(i) or 1.1(ii).

(b) The Agreement will be automatically extended, under the same rates, terms
and conditions to cover the time necessary to complete or abandon, to the
satisfaction of Operator, the Well in progress at the end of the Primary Term of
the Agreement or extension thereof, as the case may be.

(c) Period of break down, Dry Dock time, Repair time and Hull Inspection
time of the Drilling Unit unpaid by Operator may be added at the option of the
Operator to the duration of the primary term or extension thereof as the case may
be.

(d) Operator shall have the option to terminate this Agreement, at any
time during last thirty (30) days before the expiry date of the Primary Term or
any extension thereof, if the last Well being drilled is completed or abandoned
prior to such expiry date and, in the opinion of Operator, another Well cannot be
drilled within the remaining Agreement period

(BL/03/26 dated 03.05.2012)

1.4 LIQUIDATED DAMAGES.

(i) The Contractor shall deploy the Drilling Unit at the designated first drilling
location nominated by Operator, anywhere in Indian waters to
commence operation within the stipulated mobilisation period as per Clause
No.1.1.2.
ONGC/MM/03/(5)
(ii) Operator reserves the right to extend the date of mobilisation until
weather is cleared for deployment of unit to first location, if scheduled
mobilisation date as per the Mobilization clause 1.1.2 falls between the
monsoon period (from 16th May to 15th October – both days inclusive for rigs
where designated 1st drilling location is in West Coast offshore Indian
waters / from 16th October to 15th February both days inclusive for rigs
where designated 1st drilling location is in East Coast Offshore Indian
waters) without imposition of any liquidated damages.

This provision is applicable only when the original scheduled

mobilization period falls in the monsoon period.

(iii) If the Contractor delays to mobilise / deploy the Drilling Unit and
commence the operations within the stipulated mobilization period, it may
request Operator for extension of time with unconditionally agreeing for
payment of Liquidated Damages. Upon receipt of such requests, Operator
may, at its discretion, extend the period of mobilization and as its sole
remedy can recover from Contractor as ascertained and agreed Liquidated
Damages and not by way of penalty a sum equivalent to 1/2 % of annual
contract value (i.e. Effective Day Rate based on which bids were evaluated
x 365 days) for each week of delay or part thereof subject to maximum of
10% of annual contract value.

(iv) Operator shall have at any time but before Commencement Date, the right to
terminate the Contract in the event Contractor fails to deploy the Drilling Unit
at the first drilling location within the mobilization period as per Cl 1.1.2 or
within the extended period as per Para iii of clause 1.4, without prejudice to
any other clauses including LD Clause. If the mobilization period is
extended at the request of the Contractor, and if extended mobilization
period falls in monsoon, such extended mobilization period shall be
with levy of Liquidated Damages.

(v) LD will be calculated on the basis of annual contract value (i.e. Effective Day
Rate based on which bids were evaluated x 365 days) excluding duties and
taxes, where such duties/taxes have been shown separately in the contract.

(vi) The parties agree that this is a genuine pre-estimate of the loss/damage
which will be suffered on account of delay on the part of the contractor and
the said amount will be payable on demand, without there being any proof
of the actual loss or damages caused by such delay.

(BL/03/39 dated 24.08.2017)

(vii) The applicable GST on the LD shall have to be borne by the contractor.
Accordingly, the liquidated damages shall be recovered from the contractor
along with applicable GST.

1.5 Non – substitution of rig (Contract condition in Booklet No:

ONGC/MM/03):

ONGC/MM/03/(6)
 The Contractor shall mobilize the rig __________ (Name of the rig) within
the stipulated mobilization period and ONGC shall not allow substitution of the rig
under any circumstances.

1.6 INSPECTION

1.6.1 Operator shall get the Drilling Unit and equipment inspected through
any of the following internationally reputed third party inspection agency
as per the tender specifications. Operator at its option can nominate any
one of the following third party inspection agency for inspection of the
Drilling Unit and the cost of the third party inspection will be borne by
Operator:

a) MODU SPEC
b) Oilfield Audit Services Inc.
c) DNV
d) ABS
e) Any other third party inspection agency nominated by Operator

1.6.2 Operator will accept the Drilling Unit only after Operator nominated
third party inspection agency confirms that the Drilling Unit is as per the
tender specifications and that the Drilling Unit has undergone regular
repair/ maintenance / overhauling as per required industry practice.

1.6.3 Contractor confirms completion of inspection and complete

readiness of Drilling Unit in all aspects, to the satisfaction of Operator
including conformity to Operator’s tender specification certified by third
party inspection agency at least 30 days prior to stipulated mobilization
period or extended period as per clause 1.4(iii).

1.6.4 In case the Contractor fails to adhere to the above time schedules
Operator reserves its right to invoke the performance bond, forfeit the amount
of performance bond and terminate the Agreement without prejudice to any
other right or remedy available as per the Agreement.

1.6.5 Contractor agrees to provide the documents required for obtaining

Visa, at his own cost, (for the inspectors) of the country where the
Drilling Unit is offered for inspection.

1.6.6 Contractor agrees that notice for inspection as per 1.6.3 above is
required to be given by the Contractor 15 days in advance.

1.6.7 Maximum time allowed on board the Drilling Unit for inspection of
the Drilling Unit is 20 mandays (for Jack-up / Platform Rigs)/ 25 man days
(for floater rigs). The Contractor has to offer the Drilling Unit for
inspection on complete readiness of the Drilling Unit. In case inspection
takes more than 20 mandays (for Jack-up / Platform Rigs)/ 25 man days
(for floater rigs). the cost of inspection beyond 20 man days (for Jack-up
/ Platform Rigs) / 25 man days (for floater rigs) would be to the account of
the Contractor. In case inspection team is to be mobilized subsequently,
for compliance of deficiencies during the first inspection, then entire cost
towards second or subsequent inspections shall be to the account of the
ONGC/MM/03/(7)
Contractor. The charges for inspection for the period beyond 20 days (for
Jack-up) / 25 days (for floater rigs) shall be paid directly by the Operator to the
TPI Agency and will be recovered from the Contractor from his invoices upon
commencement of contract.

In case inspection is carried out in two stages then the cumulative cost of
inspection of stages 1 & 2 upto 20 man days (for Jack-up / Platform Rigs)/
25 man days (for floater rigs) on board the Drilling Unit shall be borne by
Operator. However, all other expenses after stage -1 inspection shall be
on Contractor’s account. The charges for inspection for the cumulative
period beyond 20 days (for Jack-up) / 25 days (for floater rigs) shall be paid
directly by the Operator to the TPI Agency and will be recovered from the
Contractor from his invoices upon commencement of contract.

1.6.8 STAGE INSPECTION: Operator reserves the right to stage inspect the
Drilling Unit during construction / modification of rig equipment, if any.

1.6.9 Contractor confirms that the Drilling Unit is equipped with all life saving
equipment and fire-fighting equipment as per SOLAS and IMO regulations and
agrees that valid certificates, from regulatory body where the Drilling Unit is
located at the time of inspection, shall be made available to Operator / Operator’s
nominated inspection team.

1.6.10 Contractor shall maintain all the class certificates valid throughout the
operations period.

1.6.11 Applicable for bidders offering new rigs under constructions

a) Contractor agrees to provide provisional classification certificates during

inspection by Operators nominated TPI Agency and the copies of the
original certificates within the validity of provisional certificates. Contractor
confirms to ensure that at no time the Drilling Unit shall remain without valid
class certificate.

b) Contractor confirms that the Drilling Unit will meet the class requirement at
all the times, will comply with IMO codes (if applicable). Necessary certification to
the above parameters authenticated by a reputed Third Party inspection agency
(MODU SPEC, Oilfield Audit Services Inc., DNV, ABS) to be submitted by the
Contractor 30 days prior to commencement of operations.

c) Contractor shall submit the copy of the Provisional Registry Certificate to

Operator during inspection by Operators nominated TPI Agency and to
provide the Permanent Registration Certificate within the validity of provisional
certificate.

1.6 GROSS NEGLIGENCE

“Gross Negligence” means; any act or failure to act (whether sole, joint or
concurrent) by a person or entity which was intended to cause, or which was in
reckless disregard of or wanton indifference to, avoidable and harmful
consequences such person or entity knew, or should have known, would result
from such act or failure to act. Notwithstanding the foregoing; Gross negligence

ONGC/MM/03/(8)
shall not include any action taken in good faith for the safeguard of life or
property.

1.7 WILFUL MISCONDUCT

“Willful misconduct” means; “intentional disregard of good and prudent standards

of performance or proper conduct under the Agreement with knowledge that it is
likely to result in any injury to any person or persons or loss or damage of
property”.

2.0 DEPTH

2.1 GENERAL

(a) Wells should be drilled to a depth specified pursuant to this Article 2,

clause 2.2 subject always to the right of Operator to direct at any time a
stoppage of work at a lesser depth.

(b) The Drilling Unit furnished by the Contractor hereunder, shall be fully
equipped and adequate to drill wells in terms of agreed specifications and
complete the same and carry out remedial operations thereto as specified by
Operator. The Drilling Unit and all other equipment, materials, and supplies
provided by Contractor, as specified or which Contractor is otherwise required
to provide under the terms of this Agreement, shall be in good workable
condition, and together with the personnel provided by the Contractor, as
specified in Exhibit.......shall be furnished and maintained by Contractor at
its sole cost for the rates set forth in Article 3 Contractor shall maintain the
Drilling Unit in good operating and seaworthy condition throughout the duration
of the Agreement or any extension thereof.

2.2 DEPTH

Contractor confirms that the Drilling Unit shall be capable of drilling wells upto a
maximum depth of............Meters.

2.3 WELL DEPTH

The depth of each well to be drilled, hereunder will be specified in

Operator's Drilling and Completion Programme, which Operator may amend from
time to time. The depth so specified is hereunder referred to as the 'well depth'.

3. COMPENSATION OF CONTRACTOR

3.1 GENERAL

Operator agrees to pay Contractor for work performed/ services rendered

and material equipment supplied and personnel furnished by Contractor, a sum at
the rates specified in this Clause which shall be computed from and to the nearest
half hour. The rates contained in this Clause are based on Contractor's operations
being conducted on a seven (7) days week and a twenty four (24) hours work day.

ONGC/MM/03/(9)
3.2 MOBILISATION FEE

For mobilization of the Drilling Unit, to the first Well location designated
by Operator, Operator shall pay the Contractor a Mobilization fee of ________,
within twenty one (21) calendar days from commencement date of operations
as defined in Clause 1.1 above.

3.3 DEMOBILISATION FEE

Operator shall pay the Contractor within thirty (30) days of expiry date
as defined in Article 1.2 or within 30 days of the receipt of invoice, whichever is
later, a demobilisation fee amounting to ............... on submission of invoice by
the Contractor..

3.4 DAY RATE

Under this Agreement Contractor will be entitled to an applicable day rate at all
times from the time of commencement of operations (as per Clause 1.1) till the
expiry of the charter hire period as per Clause 1.2, except where otherwise
provided for in this Agreement

DAY

Shall mean a calendar day of twenty four (24) consecutive hours beginning
at 0000 hours with reference to local time at the site.

3.4.1 OPERATING DAY RATE

Contractor shall be paid an Operating Day Rate of…………... payable

from the commencement date and at all times during the term of the
Agreement, except when specially otherwise provided for in this Agreement.

3.4.2 NON-OPERATING DAY RATE

Applicable for Jack-up rigs

Contractor shall be paid a Non-operating day rate

of____________________ (___________________________________only)
when the Drilling Unit is not operating and is either waiting for materials / orders /
instructions / programme/ waiting on weather / waiting on cement to set or
carrying out fishing operations (not due to Contractor’s equipment and tools) /
arrangement for rig move including jacking down and jacking up [subject to
clause 9.1(d)] except where otherwise provided for in this Agreement.

When the Drilling Unit is deployed on a Well, which includes a planned

fishing operations, then the Contractor shall be paid at Operating Day Rate
during such fishing operations.

Applicable for floaters

ONGC/MM/03/(10)
 Contractor shall be paid a Non-operating day rate of
________________________
(____________________________________only) when the Drilling Unit is not
operating and is either waiting for materials / orders / instructions / programme/
waiting on weather / waiting on cement to set or carrying out fishing operations
(not due to Contractor’s equipment and tools) except where otherwise provided
for in this Agreement.

When the Drilling Unit is deployed on a Well, which includes a planned

fishing operations, then the Contractor shall be paid at Operating Day Rate
during such fishing operations.

3.4.3 MOVING DAY RATE

Applicable for jack up rigs

Except where otherwise provided for in this Agreement, Contractor shall be

compensated at the Moving Day Rate of _________ (_____________) during the
time the Drilling Unit is in actual movement between locations, beginning when the
Drilling Unit has actually started moving from previous location and ending when the
Drilling unit is positioned over the next Well location.

Applicable for floaters

Except where otherwise provided for in this Agreement, Contractor shall be
compensated at the Moving Day Rate of _________ (_____________) during
the time the Drilling Unit is in actual movement between locations, beginning from
the start of de-anchoring operations at any location ending when the Drilling unit
is positioned over the next Well location with all the anchors lowered on seabed,
required tensioning done and rig positioning accepted by Operator.

3.4.4 BREAK-DOWN & BREAKDOWN DAY RATE

During the term of the Agreement, if operations hereunder are suspended,

due to break-down of or the need for repairs to Contractor's equipment, or due to
the failure of Contractor to furnish any requirement for the operation, such as but not
limited to, materials, supplies, equipments or services to which Contractor is
obligated to furnish hereunder or due to failure of Drilling Unit or due to
destabilisation of the Drilling Unit due to whatever reasons and if such failure /
destabilization results in the operations being materially affected, Contractor shall
be paid at the Equipment Break-Down Day Rate of _______ (
______________only) upto a maximum of 32 (thirty two) hours as compensation
per calendar month. Beyond the said 32 hours, daily compensation shall not be
payable to Contractor during such failure /breakdown / destabilization until
operations are recommenced to the satisfaction of Operator at which time the
applicable rate shall again come into force.

Beyond the above mentioned permissible period, zero rate will be applicable for
further period of breakdown.

Operator shall provide diesel, water and other services (except tug boats) at its cost
for a maximum period of seven days during breakdown. Thereafter, the cost of
diesel, water and other services shall be borne by Contractor.
ONGC/MM/03/(11)
3.4.5 BOARDING AND LODGING

Contractor agrees to have the provision for keeping 15(fifteen) Operator

and/or its third party personnel on board the Drilling Unit and Operator would pay
@US$ 15 (United States Dollars Fifteen only) per day per person for boarding &
lodging. In case a person does not stay overnight on Drilling Unit and takes only
meal(s), then US$ 6 (United States Dollars six only) shall be payable for individual
meal

In case, the bidder quotes their rates in any other currency other than US Dollars,
the Boarding and Lodging charges shall be converted to the currency quoted, at
the closing B.C. Selling market Rate of exchange declared by SBI on the day
prior to the opening of price bid/revised price bid, if any.

3.4.6 RENTAL FOR OPTIONAL H2S EQUIPMENT

Rental for H2S Safety Equipment as Per Exhibit-D (Annexure – I – Appendix – 14 )

shall be_____ per day including its mobilization and de-mobilization charges. The
option to take these equipment shall be with the Operator and rental of above
equipment shall be payable only during its period of use. In case of utilization of
these equipments, Operator shall give the Contractor a notice period of 30 days.

3.5 HULL INSPECTION

Contractor shall be required to carry out repair of damaged or structural

defects in the hull structure and/or to carry out required inspections, which
prevent the hull structure from performing its normal intended functions.
Contractor shall be required to effect said repairs, inspections or modifications
required as a result of said inspection at its cost at zero rate and Operator shall
provide diesel, water and other services (Air Logistics, Material transport &
Standby boat for safety) at its cost for maximum period of 10 days provided the
said inspection/repairs are carried out at old drilling location or enroute to new
location designated by Operator, thereafter cost of diesel, water and other
services (Air Logistics, Material transport & Standby boat for safety) shall be
borne by Contractor. Contractor shall arrange & bear all costs towards diesel,
water and other services (Air Logistics, Material transport & Standby boat for
safety) in case the inspection/ repairs are carried out at location other than as
specified above.

The term ‘Hull’ for the purpose of this clause will include legs (and Mat
incase of Mat supported rigs) and spud can. applicable for Jack-up rigs only)

Zero rate shall commence from the time, when the Drilling Unit cannot perform its
normal intended functions ending when the Drilling Unit is positioned over the
next location and ready to commence Well operations, except that, if the Drilling
Unit, after said inspections/ repairs, commences operations, as per Contract, at
the next location designated by Operator, then Operator shall pay the amount to

ONGC/MM/03/(12)
cover distance from the previous location to next location, directly, as if it is
movement between two locations, in accordance with Clause No. 3.4.3- " Moving
Day Rate". However, in the event, Drilling Unit commences operations at the
same location prior to moving the Drilling Unit for said inspections/ repairs, no
rate whatsoever shall be payable to the Contractor.

For calculation of Moving Day Rate for positioning at new location in case of a
situation mentioned above, the average speed of towing tug/Drilling Unit (if self
propelled) during previous inter-location movement shall be considered.
However, if there is no previous inter-location movement, then the average speed
of towing tug (Drilling Unit) for movement of Drilling Unit from previous location to
repair/ inspection site and back to location, as mentioned above, shall be
considered.

If drilling operations at location are over and only hull inspection / repair etc. as
mentioned above is carried out then the time in jacking down at the said location
and the time taken in jacking up at the next location shall be allowed at Non
Operating Day Rate.

Operator, if required, shall off-load/ load, from/ on Drilling Unit, Operator’s or its
third party's equipment, at mutually agreed place and time at the cost of
Contractor without any financial liability to Operator including payment of any day
rate. Primary term of this contract or any extension thereof shall be extended as
per Clause 1.3(c) by a period equal to the time the Drilling Unit was off-duty. At
the request of the Contractor, subject to availability Operator may provide boats
for towing of Drilling Unit for hull inspection at Contractor’s cost.

The Operator may provide Diving services essential for Drilling operations only.
Search of Contractor’s equipment will be at Contractor’s cost. However, Operator
shall provide diving services as may be available with the Operator, to the
Contractor at the Contractor's cost subject to exigencies of operations

3.6 DEFICIENCIES

(1) Contractor's equipment shall be maintained by Contractor in sound and

efficient operating condition at all time. Should the performance of Contractor's
drilling equipment becomes unsatisfactory or the general standard of
performance of work hereunder be materially reduced because of defective drill
pipe, drill collars, or other Contractor's furnished equipment or by reason of
Contractor's incompetence or negligence, Operator shall give Contractor written
notice specifying the causes of its dis-satisfaction to correct the specified
deficiency within 15 days failing which Operator shall have the right to terminate
this Agreement by giving thirty (30) days advance written notice to the
Contractor, unless the specified deficiency is corrected within such thirty (30)
days period. In this event no demob fees will be payable by the Operator.
Notwithstanding the provision contained in the Contract, Operator shall
recover the mobilisation charges, if any, paid in terms of clause 3.2 in case
the deficiency occurs during pendency of the contract, on prorata basis for
the period of performance, in addition to invoking of performance bond due to
failure of the Contractor in not executing the contract faithfully.

(2) Should Contractor be denied access to the location of drilling

ONGC/MM/03/(13)
operations due to lack of compliance of any permits or licenses required by the
Operator pursuant to Article 13.1 hereof, time lost as a result thereof shall be
compensated at the non-operating Day Rate.

3.7. LOADING OF OPERATOR'S EQUIPMENT

(Applicable for Jack-up)

Operator shall mobilise all of Operator's/Operator’s third party equipment to the

first drilling location nominated by Operator for loading on board the Drilling
Unit.

In the event 'Drilling Unit' is specially brought or is retained at the harbour to

load the Operator's/ Operator's third party equipment, before commencement
of operations, Contractor shall be paid at the Non Operating Day Rate for the
time the Drilling Unit is being jacked up at the harbour point the loading
operations are being carried out and thereafter Drilling Unit is jacked down.

Moving Day Rate shall be paid during the period of towing of Drilling Unit from
harbour to first drilling location.

For removing the Drilling Unit from harbour to first location, tow will be provided
by Operator at its cost.

(Applicable for floaters)

Operator shall mobilise all of Operator's/ Operator’s third party equipment to the
first drilling location nominated by Operator for loading on board the Drilling
Unit.

In the event 'Drilling Unit' is specially brought or is retained at the harbour to

load the Operator's/Operator's third party equipment, before commencement of
operations, Contractor shall be paid at the Non Operating Day Rate for the time
when the anchors are being dropped, the loading operations are being carried
out and thereafter when the last anchor is lifted.

Moving Day Rate shall be paid during the period of towing of Drilling Unit from
harbour to first drilling location.

For removing the Drilling Unit from harbour to first location, tow will be provided
by Operator at its cost.

3.8 PERSONNEL MOBILISATION

For purpose of this Agreement, the Operating Area shall be anywhere in

Offshore Indian Waters. In the event there is a change of location from West
coast to East coast or vice versa and Contractor shifts its office to the new
location, Operator shall pay all reasonable expenses thereby incurred in
moving a maximum of four (4) of Contractor's shorebase personnel, personal
belongings of the said personnel and the Contractor's onshore equipment,
materials, supplies and related items located therein, from the original location to
new location, such transportation being limited to surface/sea transportation
charges only. Contractor shall be solely responsible for providing all other

ONGC/MM/03/(14)
requirements of its personnel including but not limited to, housing,
transportation.

3.9 FIRM PRICE

The rates payable under Article 3 hereinabove, shall be firm during

Agreement period including the extension period under Clause 1.3 of the
Agreement.

3.10 PERFORMANCE

The Contractor undertakes to perform all its service under this Agreement
with all reasonable skill, diligence and care in accordance with the terms and
conditions of this Agreement and also sound industry practice to the satisfaction of
the Operator and accepts full responsibility for the satisfactory quality of such
services.

Operator shall give Contractor written notice specifying the causes of its dis-
satisfaction to correct the specified deficiency, within 15 days failing which Operator
shall have the right to terminate this Agreement by giving thirty (30) days advance
written notice to the Contractor, unless the specified deficiency is corrected within
such thirty (30) days period.

In this event, no demobilization fees will be payable by the Operator.

Notwithstanding provisions contained in the Agreement, Operator shall recover
the mobilisation charges, if paid in terms of clause 3.2 on pro-rata basis for the
period of performance, in addition to invoking of performance bond due to failure
of the Contractor in not executing the Agreement faithfully and forfeit the same. If
at any time during the term of this Agreement break down of Contractor’s
equipment results in Contractor being unable to perform its obligations hereunder
for a period of 15 successive days (not including Force Majeure delay or break
down of Contractor’s equipment caused by a Well blow-out or all the
consequences thereof), Operator, at its option, may terminate this Agreement, in
its entirety without further right or obligation on the part of Operator except for the
payment of money for the services rendered as per provisions of this Contract.
No notice shall be served by the Operator under the condition stated above.

3.11 PERFORMANCE BOND (applicable for tenders upto Rs. 1 crore)

The Contractor has furnished to the Operator an irrevocable and

unconditional Performance Bank Guarantee bearing No.___________ dated
____ for _______issued by ______________ with validity of _______. The
Contractor agrees to extend the validity of the Performance Bank Guarantee so
as to be valid up to 120 days (for foreign bidders) / 60 days (for Indian bidders)
beyond the last date of Primary Term of this Agreement or any extension thereof.
In the event of the Contractor fails to honour any of the commitments entered
into under this Agreement and/or in respect of any amount due from Contractor
to the Operator, the Operator shall have the unconditional option under the
guarantee to invoke the said guarantee with the bank and claim the amount
from the bank. The bank shall be obliged to make the payment to the Operator
upon demand. The Contractor further agrees to extend the period of this
guarantee or to furnish a fresh guarantee if the Operator decides to extend the
ONGC/MM/03/(15)
period of this Agreement as stated in the Article 1.3(a), 1.3 (b) and 1.3 (c).

PERFORMANCE BOND (applicable for tenders above Rs. 1 crore)

The Contractor has furnished to the Operator an irrevocable and

unconditional Performance Bank Guarantee bearing No.___________ dated
____ for _______issued by ______________ with validity of _______. The
Contractor agrees to extend the validity of the Performance Bank Guarantee so
as to be valid up to 120 days (for foreign bidders) / 60 days (for Indian bidders)
beyond the last date of Primary Term of this Agreement or any extension thereof.
In the event Contractor committing breach of any of the terms and conditions
of this Agreement or fails to honour any of the commitments entered into under
this agreement or in the event of termination of the contract under provisions of
Integrity Pact and /or in respect of any amount due from Contractor to the
Operator, the Operator shall have the unconditional option under the guarantee
to invoke the said guarantee with the bank and claim the amount from the bank
and forfeit the same. The bank shall be obliged to make the payment to the
Operator upon demand. The Contractor further agrees to extend the period of
this guarantee or to furnish a fresh guarantee if the Operator decides to extend
the period of this Agreement as stated in the Clause 1.3(a), 1.3 (b) and 1.3 (c).

4. MATERIAL, SUPPLIES, EQUIPMENT, SERVICES & PERSONNEL TO

BE FURNISHED BY CONTRACTOR

4.1 MATERIAL, SUPPLIES, EQUIPMENT AND SERVICES

(a) Contractor will furnish and maintain at its cost all items designated at Exhibit
`A' (Annexure–III of tender document) hereto under the heading `Furnished by
Contractor'.

(b) Any additional items of Contractor’s equipment not specifically mentioned

elsewhere in this Agreement and found necessary to the operation shall be
provided as specified in Article 5.1(a) (ii) or on such other basis as is
negotiated by the parties.

(c) Contractor at its cost shall have the drill strings inspected by a recognized
inspection agency mutually acceptable by both parties prior to the first Well
unless inspected within last six months in previous contract, and thereafter
every six months or 50,000 feet of drilling, whichever occurs first. Operator,
shall, at any other time, have the right to request the Contractor to have the
drill pipe inspected by a recognized inspection agency at Operator’s cost.

(d) In case Drilling Unit is deployed in an area where quality of water is not
conducive for making of potable water by water makers installed on Drilling
Unit, Operator will provide the potable water at Operator’s cost subject to
furnishing of a certificate from underwriter’s surveyor M/s. Noble Denton &
Associates (NDA) to this effect.

4.2 PERSONNEL

(a) Contractor will at all times at its sole expense and under its exclusive
ONGC/MM/03/(16)
 responsibility arrange supervisory, technical and other personnel to properly
perform the work, in the numbers and categories as set forth at Exhibit – ‘B’
(i.e. Annexure – III – Appendix 5) hereof, Operator shall be responsible for
securing work permits and security passes for Contractor's employees and
personnel, if required.

All of Contractor's supervisory personnel including the Manager, Toolpusher

and Driller shall be easily understandable in English language.

(b) Contractor may be required to deploy additional personnel for

maintenance/ operations/ supervision/ training/inspection for which the request
of Contractor will be considered on merit by the office of the Operator
specifically authorised to accord such approval. Helicopter services for such
personnel subject to two numbers at any one time will be provided by Operator
at time of crew change at no extra cost to the Contractor and no special sorty
shall be provided for such additional personnel. Any Person exceeding two
numbers shall be transported by boats by Operator on chargeable basis to
Contractor. However, NDA / Warranty/ Class surveyors (maximum two at a
time) shall be provided transportation by Helicopter, by the Operator at no cost
to the Contractor.

(c) In the event a member of crew as listed in Exhibit - B (Annexure – III –

Appendix – 5 of tender document) is not deployed on duty then the daily rate will
be reduced as detailed at Exhibit –C ( Annexure – III – Appendix 4 of tender
document) to reflect reduction in costs of Contractor, for such short deployment.
However, if such short deployment is on account of sickness/ accident on
location or as per Operator's instructions due to disciplinary reasons, upto a
maximum 7 days will be allowed for replacement without any reduction in the
daily rate.

4.3 TRANSIT PLACE AT SUPPLY BASE

The Operator may provide Space at its Supply base for transit storage of
materials required for carrying out drilling operations. It is agreed that the
Contractor shall remove their materials (Non-Serviceable or Serviceable) at their
cost within 30 days from the time of arrival of material from the space provided
by the Operator at supply base.

Any material being stored by Contractor beyond 30 days, the Operator

would charge a ground rent as per Mumbai Port Trust / Kolkatta Port Trust/
Chennai Port Trust / Kakinada Port Trust rate applicable on the day of removal
of material and will be recovered from any amount due to the Contractor without
giving any further notice. In case, material is stored due to variable load
constraint, no ground rent shall be charged. Further, Contractor shall obtain all
necessary clearances from Customs for storage and removal of materials from
Stores.

Note :

1. When any material / equipment is offloaded due to variable load

constraint no ground rent shall be charged to the rig Contractor.

ONGC/MM/03/(17)
 2. However, Rig contractor to maintain the documentary evidence that the
material have been offloaded due to variable load constraint having approval
of Company man on board the Drilling Unit.

3. Any other material being stored beyond 30 days, the Operator would
charge a ground rent as per existing provision of Clause No.4.3 of Contract.

Notwithstanding the above, all the materials have to be removed by the

Contractor on or before the expiry of Contract and the Contractor agrees that
final payment would be released upon receipt of “No Objection Certificate” (NOC)
to this effect from the Operator’s Logistics Department at supply base.
Contractor shall apply for “No Objection Certificate” to In-charge, Logistics
Department, ONGC, at Supply Base and the In-charge, Logistics Department
shall issue NOC within 30 working days of clearance of all materials belonging to
Contractor. Further any Penalty and fine being imposed by Customs department
or any other statutory body on the material being stored at supply base
whatsoever shall be to Contractor’s account.

The copies of duly Customs cleared document pertaining to material

being brought from Offshore or being taken to Offshore from transit storage
would be submitted to the Operator’s Logistics Department at supply base.

4.4 DIESEL ( applicable for Floater rigs only)

Contractor has indicated consumption of diesel as ____ (_______) KL/day

for the Drilling Unit, its equipments and tug boats. Operator’s responsibility
is to provide _____ KL/day of diesel multiplied by the number of days of the
particular month or part thereof (where Drilling Unit had operated for part of
the month and not full month) or as per actual consumption for the
respective months, whichever is lower.

For requirement of diesel in excess of the above monthly quantity, Operator is not
responsible to provide diesel and Contractor agrees to arrange diesel themselves at
Contractors cost. No carry forward will be permitted if actual consumption per
month is less than that calculated based on indicated consumption above.

5.0 MATERIALS, SUPPLIES, EQUIPMENT, SERVICES & PERSONNEL TO BE

FURNISHED BY OPERATOR.

5.1 MATERIALS, SUPPLIES,EQUIPMENT, SERVICES & PERSONNEL

(a) i) All items of equipments, materials, supplies, service personnel

required for operations hereunder, other than items to be supplied by Contractor
as set forth in Exhibit......and Exhibit ......will be furnished by Operator at the
well site, and Contractor would have no liability for any costs thereof.

(BL/03/39 dated 24.08.2017)

ii) All items of equipment, materials, supplies, services and service
personnel required for operations hereunder, other than those items set forth in

ONGC/MM/03/(18)
Article 4 hereof or otherwise required to be replaced or furnished by Operator will
be furnished by Operator, or at Operator's request, such items or any
other items which Operator is required to furnish under this Agreement may be
furnished by Contractor and billed to and be reimbursed by Operator at actual
invoice cost provided that if the item is furnished out of Contractor's inventory
the lowest quote from two reputable vendors/suppliers will establish
the replacement cost less any cash discount obtained by Contractor, plus
actual documented freight, packing and insurance costs of such items
obtained outside the area of operations.

Further, if the operator on scrutiny finds quotation of some other

reputable vendors to be lower, then Operator will have the discretion to pass the
invoices based on the lower quotation. When such items are sent by air, at the
specific request of Operator the entire cost thereof shall be for the account of
Operator, including Air freight. In the event contractor is requested to furnish
any single item or equipment, materials or supplies which, operator is required to
furnish under this Agreement, Contractor's fee of 7.5% will be payable by
Operator on F.O.B. value less discount if any, for each procurement costing
US$ 60,000 and 5% for each procurement costing more than US$ 60,000 to
cover total costs, to contractor on account of such procurement and actual cost
of services against documents. In addition, customs duty paid if any, would be
reimbursed at actuals against documentary evidence.

iii) For all services rendered or materials supplied to Contractor by Operator

at Contractor's request which services or materials are the obligations of the
Contractor, and which services or materials the Operator may agree to provide
at its discretion the Operator shall charge the Contractor for actual costs as
supported by vendor's invoice plus 7.5% service fee on FOB value for each
procurement costing upto US dollars 60,000 and 5% for each procurement
costing more than US dollars 60,000, thereon to cover costs on account of such
procurement and cost for services. The Contractor shall make the payment to
Operator as provided above without raising any objection or dispute about the
same. The Contactor also agrees to pay the Operator, applicable GST or any
other tax for providing the services or materials. It will be the sole discretion of
the Operator to accept or refuse such request(s) of Contractor. In case such
request (s) is refused by the Operator, no claim of any nature will be preferred by
the Contractor against the refusal of such requests by the Operator.

(b) Any equipment, materials or supplies purchased by Contractor on account

of Operator shall thereafter become the property of Operator upon
payment by Operator.

5.2 OPERATOR'S INSTRUCTIONS

Operator may from time to time through its authorised representative or

representatives, issue written or oral (to be followed by writing) instructions to
contractor concerning operations.

6.0 INSPECTION OF MATERIALS

6.1 INSPECTION BY CONTRACTOR

ONGC/MM/03/(19)
 Contractor agrees to perform a visual inspection, using its personnel, of
all materials and appliances furnished by Operator when delivered into
Contractor's possession and shall notify Operator's representative of any
apparent defects observed therein so that Operator may replace such defective
materials or appliances. If Contractor fails to notify Operator of any apparent
defects as provided above, it shall be conclusively presumed that such
materials and appliances are free from such apparent defect. Contractor shall
not be liable for any loss or damage resulting from the use of materials or
appliances furnished by Operator containing latent defects. Upon the
termination of this Agreement, Contractor shall return to Operator at the well
site all machinery, equipment, tools, spare parts and supplies received by
Contractor from Operator or purchased by Contractor for Operator's account
and not used or consumed in the operations, in as good condition as when
received by Contractor, normal wear & tear excepted. If damage to any
Operator's equipment is caused due to sole negligence of the Contractor, same
will be repaired or replaced at Contractor's cost. Contractor shall, if requested
by Operator also maintain or repair, at its cost, any of Operator's items, on
board the Drilling Unit which Contractor is qualified to and can maintain or
repair with Contractor's normal complement of personnel and the equipment on
board the Drilling Unit provided however that Operator shall at its cost provide
all spare parts and materials required to maintain or repair operator's items.
However, it shall remain the Operator's basic responsibility and liability to ensure
that such items are always in good workable condition.

6.2 INSPECTION BY OPERATOR

Operator shall have the right to inspect and reject for any valid cause any items
furnished by Contractor and Contractor, shall replace or repair at its
sole expense such items so rejected with items free of defects, to the
satisfaction of Operator.

7.0 PAYMENT

7.1 TIME OF PAYMENT

(BL/03/16 dated 13.01.2010)

Operator shall make payment under this Agreement within 21 (twenty one)
calendar days from the date of receipt of a clear (undisputed) invoice from
Contractor, subject always to Operator's right to require Contractor to furnish
it with satisfactory evidence of the validity and prior payment by Contractor of
all labour and materials incurred by Contractor and charged to Operator.

Should Operator withhold any payment out of the invoice claim, it shall give
reasons for withholding of such amount from the invoice.

The amount not in dispute is to be paid within the above 21 (twenty one)

ONGC/MM/03/(20)
calendar days period.

7.2 INVOICE PRESENTATION

(BL/03/39 dated 24.08.2017)

Invoice, accompanied by copies of the original vouchers, records, receipts or
other supporting evidence for the work performed or the expenses incurred
during each month, shall be presented to Operator's office on or before the
tenth (10th) of each succeeding month or soon thereafter.

The original invoice should also accompany the following documents/details:

(An indicative list of documents is given below. Tender Committee should

deliberate on the same and select the appropriate documents as applicable
for the respective case and incorporate the same suitably in the Bid
document / Contract, after making necessary additions/deletions.)

1) Along with first invoice:

Following documents / details should be invariably furnished along with the
first GST invoice raised under GST Law indicating GST Registration Number
therein:

a) Copy of valid GST registration certificate under GST Legislation

2) Payment of Mobilization Charges:

a) Invoice (In accordance with the relevant GST rules).

b) Insurance policies (As applicable).
c) Inspection report (Pre-mob, as applicable).
d) Notification Certificate of Acceptance of Mob.
e) Certificate of ‘Commencement of operation’ under this contract.

3) Periodical / Monthly payment:

a. Invoice (i.e. Tax invoice as per relevant GST rules, in original and duplicate,
clearly indicating Service Classification, Service Accounting Code, Rate and
amount of GST shown separately).
b. Insurance policies and proof of payment of premium (As applicable)
c. Details of statutory payments like EPF and ESI (As per clause 7.2.2 below),
etc. (As applicable)
d. Undertaking by the contractor regarding compliance of all statutes
e. Certificate by the contractor stating that labour have been paid not less than
minimum wages. (As applicable)
f. Copy of Time sheet / Log Sheet /DPRs with summary showing non-operating
period, operating period, Rig move period, idle period, breakdown of equipment,
non deployment / short deployment etc (if any) and reasons thereof
g. Attendance Sheet (How many person on board) / Manpower deployment
sheet [showing non deployment / short deployment etc (if any) and reasons
thereof].

ONGC/MM/03/(21)
h. Statement of persons travelled on chargeable basis (Recoverable), if
applicable.
i. Fuel charges (Daily consumption report of fuel) and statement of material/
consumption (incl. HSD, cement, mud chemicals, pot water, etc.) taken from
ONGC on chargeable basis, if applicable.
j. Catering Bill (Log Sheet).
k. Telephone Bill (Log sheet).
l. Any other document specifically mentioned in the Contract, or supporting
documents in respect of other claims (if any), permissible under the Contract.
m. - Deleted -

4) Lost In Hole Payment:

a. Invoice.
b. Bill of Entry.
c. Dispatch convey note/ Manifest of ONGC.
d. Certificate of Conformity.
e. Report on Loss in hole.
f. Proof of payment (towards the purchase of equipments).
g. Certificate of 1st used.

5) Payment towards Indian Agent Commission (IAC):

a. Invoice of IAC (stamped pre-receipted bill)

b. Particulars required for making payments through ‘Electronic Payment
Mechanism’, in accordance with the clause on ‘MODE OF PAYMENT’ appearing
in Annexure-I (i.e. ‘Instructions to bidders’) of bid document.
c. Payment advice (if applicable) against which IAC is claimed.
d. e-mail ID.

(BL/03/28 dated 16.04.2014)

7.2.1 Particulars required before releasing payments to (foreign

CONTRACTOR (non-resident as per Income Tax Act, 1961):

The particulars as per clause _____ (work center to indicate the appropriate
clause number) of Annexure-I are invariably required before releasing payments
to foreign CONTRACTOR, in accordance with the requirements for making
remittances to non-residents as per Income Tax Act, 1961 (as amended from
time to time).

In addition to the said particulars submitted alongwith the bid, the

CONTRACTOR should also provide any other information as may be required for
determining the taxability of the amount to be remitted to the non-resident.
Further, the CONTRACTOR shall be liable to intimate the subsequent changes (if
any) to the information submitted against any of the said particulars, alongwith
full details.

CONTRACTOR should note that any delay in submission of

information/documents as per clause _____ (work center to indicate the
appropriate clause number) of Annexure-I within the specified time may lead to
the Income Tax Department directing ONGC to deduct tax at a higher rate than
ONGC/MM/03/(22)
at which it may otherwise have directed. Such increased tax liability shall be
recovered from the contractor.

7.2.2 Details of statutory payments like EPF and ESI etc.

(BL/03/27 dated 16.09.2013)

Wherever applicable, the Contractor (including those engaging

‘International Workers’) shall have itself registered under Employees’ Provident
Fund and Miscellaneous Provisions Act, 1952 and Employees’ State Insurance
Act, 1948 and follow the relevant statutory provisions including Rules made
there-under concerning contractual workers. The contractor shall be required to
submit the following documents/details to the Corporation:

(i) Copy of PF-ECR duly stamped by the designated Bank, alongwith a print
of the digitally signed PDF data sheet of the ECR, as proof of payment, each
month, details of this PDF data sheet shall be verified by the appropriate
authority (i.e. Payment Making Authority) in the Corporation from the official
website of EPFO (http://www.epfindia.gov.in).

(ii) (A) Copy of the online challan endorsed / stamped by the designated
bank as proof of receipt of payment towards monthly contribution of
ESI contribution.

(B) Copy of Return of contribution in respect of ESI for each contribution

period of the six months ie. for the contribution period ended 30th Sept
and the contribution period ended 31st March.

(iii) As an Annexure to each EPF-ECR and ESI Challan(s), contractor shall

also furnish the following Certificates:

a. The furnished information is correct to the best of his knowledge.

b. In case any discrepancies or irregularities is /are noticed in this
undertaking, then ONGC is free to inform the PF/ESIC Authorities.
c. Before the completion of contract, contractor shall serve one
month notice to all his contractual workers, informing that their
services will be terminated.
d. Within one month on completion/expiry of the contract, contractor
shall pay all the dues/ terminal dues such as leave with wages,
bonus (if applicable), Gratuity (if applicable), to all his contractual
workmen, failing which contractor’s Bank Guarantee/ Security
Deposit may be withheld by ONGC.

Corporation shall maintain these records and verify the deposit of statutory
contribution made by the contractors with the EPFO/ESI authorities, where
deemed necessary. However, before making payment of the last bill/invoice of
the Contractor, the appropriate authority (i.e. Payment Making Authority) in the
Corporation, shall verify the details/status of the payment towards EPF/ESI made
by the Contractor from the authorities/official website of EPF/ESI (i.e.
http://www.epfindia.gov.in and http://www.esic.in). In case the information

ONGC/MM/03/(23)
furnished by the Contractor is found to be incorrect the Corporation shall take
appropriate action against the Contractor.

Note: Conditions for applicability of above provisions

Above clause w.r.t. submission of details on EPF and ESI payments shall not be
applicable in following types of contracts:

(a) In those Contracts wherein the services/jobs has been performed

exclusively in the premises of the contractor, certificate to the effect is to be
submitted by the Contractor that services/jobs to be executed under the contract
have been performed exclusively in his premises.

OR

(b) In those contracts also wherein contractor has employed only their full time
regular employees for execution of the contract, certificate to the effect is to be
submitted by the contractor that for execution of the contract, no contractual
labour has been employed and only full time regular employees of the contractor
have been employed.

OR

(c) Fulfillment of conditions at (i) on EPF and (ii) on ESI mentioned below:

(i) Information sought in above clause pertaining to only EPF shall not be
required to be submitted in those contracts wherein the contractor has employed
only those of his employees whose pay exceeds Rs. 6500/- per month thereby
they are covered under the definition of “Excluded Employee”. Certificate to the
effect is to be submitted by the contractor that for execution of the contract, the
monthly wages of all employees who have been employed, exceeds to Rs.
6500/- per month or they have been treated as “Excluded Employee”.

(ii) Information sought in above clause pertaining to only ESI shall not be
required to be submitted in those contracts wherein the contractor has employed
only those of his employees whose pay exceeds Rs. 15000/- per month as in
terms of the current provisions of the ESI Act, 1948 an employee whose monthly
pay exceeds Rs. 15000/- is outside the purview of the ESI Act. Certificate to the
effect is to be submitted by the contractor that for execution of the contract, the
monthly wages of all employees who have been employed, exceeds Rs. 15000/-
per month. Further, ESI Act, 1948 is applicable only in areas where it has been
made applicable by Gazette Notification in this regard. (In the areas of ONGC
operation, the ESI Act is currently applicable in all areas except the NE States.
However, the Act is applicable in Guwahati. Applicability in new areas of
operation is to be verified from the office of the ESI Corporation concerned.)

In case a contractor falling under the provisions of the Note mentioned

above does not submit the required details on EPF and ESI payments, then in
that case, the Contractor shall be required to indemnify ONGC for any liabilities
arising out of declarations made by him in future on violation or provisions of the
EPF Act 1952 and ESI Act 1948.

ONGC/MM/03/(24)
7.3 PLACE OF PAYMENT

Operator agrees to make all remittances under this Agreement into

contractor's account at............

7.4 OPERATOR'S RIGHT TO QUESTION THE AMOUNTS CLAIMED

(a) Payment of any invoice shall not prejudice the right of the Operator to
question the allowability under this Agreement of any amounts claimed
therein, provided Operator, within one year beyond the expiry of each
contract year, delivers to Contractor, written notice identifying any item or
items which it questions and specifying the reasons therefor. Should
Operator so notify Contractor, such adjustment shall be made as the parties
shall agree. These provisions shall be reciprocal for similar rights to the
Contractor.

(b) The Contractor shall provide on demand a complete and correct set of
records pertaining to all costs for which it claims reimbursement from
Operator and as to any payment provided for hereunder, which is to be
made on the basis of Contractor's costs.

(c) No interest shall be payable by the Operator on any delayed payment /

disputed payment.

7.5 AGENT/ CONSULTANT/ REPRESENTATIVE/ RETAINER/ ASSOCIATE

(Applicable for ICB tenders only)

PAYMENT OF COMMISSION / FEE/ REMUNERATION OF INDIAN AGENT /

CONSULTANT / REPRESENTATIVE / RETAINER/ ASSOCIATE OF FOREIGN
PRINCIPAL

Contractor have confirmed in their offer that M/s.

_______________________________ are their authorized Indian Agents in India
and are entitled to receive a remuneration of __% of total amount payable to
Contractor by Operator against the Agreement.

The Rates mentioned in Clause 3.0 hereinabove, includes the Indian Agent
Commission as aforesaid.

The Permanent Income Tax Account No. of M/s. ____________ is _________.

The Commission/ Fee/ remuneration of the Indian agent/ consultant/ associate/

representative/ retainer will be paid within 30 days of the payment of invoice
made to the Contractor, The amount of commission/ fee/ remuneration as a
percentage of invoice value as per contract provisions will be deducted by
Operator from the monthly invoices of the Contractor and paid to the Indian
agent/ consultant/ representative/ retainer/ associate.

Indian Agent Commission shall be paid to the Indian Agent by the

Operator in non-convertible Indian Rupees at the exchange rate of 1
ONGC/MM/03/(25)
 (foreign currency)= Rs. _____ [closing B.C selling rate of exchange
declared by SBI on ______ (the working day prior to price bid opening
date i.e. _________)].

The payment of Indian Agent Commission will be subject to the condition that
the Indian Agent sends a stamped pre-receipted bill for the Commission/ fee/
remuneration.

Should it be established at any subsequent point of time that the

above statement of the Contractor is not correct or that any other
amount of remuneration/ commission either in India or abroad is being
paid to any one (who is not an employee of the Contractor), the
Contractor would be liable to be debarred from participating in the
future tenders of Operator as per provisions of Clause No.22.8.1.

8.0 CASING AND MUD PROGRAMME

8.1 CASING PROGRAMME

The Casing programme to be followed in the drilling of wells under the

Agreement shall be as specified by Operator.

8.2 MUD PROGRAMME

Contractor shall make, maintain and use drilling mud with water loss,
weight and viscosity in accordance with such mud programme as the Operator
may decide as per good oilfield practices. At all times Contractor shall
exercise due care and diligence in keeping the hole and all strings of casing
and spaces between casing filled with drilling mud. Under the supervision of
Operator's chemist, Contractor shall maintain and test drilling mud at least twice
each hour for weight and viscosity. The Contractor shall record the result of
such test and deliveries and use of mud and mud materials in its Daily Drilling
reports.

9.0 PERFORMANCE OF THE WORK

9.1 INDEPENDENT CONTRACTOR RELATIONSHIP

(a) Contractor, directly and through its employees, shall perform all
work connected with the Drilling operations herein contemplated. In the
performance of this work, Contractor is an independent Contractor and is
completely responsible to control and execute the details of the work,
Operator being interested in proper execution and results obtained. The
work contemplated herein shall meet the approval of Operator and be
subject to the general rights of directions and inspection. Neither
Contractor's employees nor employees of its sub-contractors, shall be
considered employees of Operator.

b) Contractor shall at all times, have full responsibility for control,

direction and supervision of operations being carried out under this
Agreement except when and to the extent that the Operator assumes
ONGC/MM/03/(26)
 control and supervision of operation.

c) Contractor shall have complete responsibility regarding the safety

of operations of all systems and all personnel on board the Drilling Unit.
The extent of Contractor's responsibility shall include but not be limited to
making final decision regarding:-

1 Sea and Wind or other conditions under which Drilling Unit may be
safely moved to and between locations.

2 Sea and Wind or other conditions existing or impending under which the
Drilling Unit shall be moved to sheltered waters during cyclones.

3 Evaluation of inspection and survey conducted by Operator of sea floor

condition to determine whether or not the Drilling Unit can be positioned at
the site of operations considering the conditions at the site or maintained
in position on same during the operations.

4 Whether or not the Drilling Unit may be safely Jacked up (applicable for
Jack-up rigs)// anchored on a location (applicable for Floater rigs).

5 Subject to Article 9.6, Well Control Measures, Actions and Procedures

affecting the containment of existing or potential escape of pressures
which could lead to blowouts, cratering, or similar catastrophe.

d) The Contractor shall however be totally responsible and liable for

movement of the Drilling Unit between the locations and Operator will not
be responsible other than the responsibilities mentioned in schedule of
responsibilities for inter location movement.

Following provision shall be applicable for Jack-up rigs)

If the Drilling Unit leg (s) is / are stuck up at a particular location due to
whatever reasons for more than seven days, Contractor will be put on zero
rate after seven days from the date of release of the Drilling Unit till the rig
starts moving to next location. After seven days, Diesel, water and other
services (Air Logistics, Material transport & Standby boat for safety) will be
on chargeable basis.

9.2 OPERATOR'S AND CONTRACTOR'S REPRESENTATIVES

(a) The actual performance and superintendence of all work hereunder shall
be by Contractor.

(b) Operator shall designate in writing representative or representatives

who shall at all times have complete access to the Drilling Unit for the purpose
of observing inspection or supervising the work performed by Contractor in order
to judge whether in Operator's opinion, Contractor is complying with the
provisions of this Agreement. Operator shall notify Contractor in writing of the
name(s) and authority of its representative or representatives. Such
representative or representatives shall be empowered to act for Operator in all
ONGC/MM/03/(27)
matters relating to Contractor's performance of the work herein undertaken.
Contractor agrees at all times to cooperate with and extend assistance to
employees of Operator or employees of Operator's Contractors performing
any function under this Agreement.

(c) Contractor shall designate an Area Manager in-charge of Contractor's

Drilling Unit. Contractor shall notify Operator in writing of the name(s) and
authority of its representative or representatives. Such representative or
representatives shall be fully capable and empowered to act for Contractor in
all matters relating to Contractor's performance of the work in accordance with
this Agreement.

9.3 SAFETY AND LABOUR LAWS

All safety and labour laws enforced by statutory agencies and by

Operator shall be applicable in the performance of this Agreement and
Contractor shall abide by these laws.

9.4 DEVIATION OF THE HOLE

Contractor shall take all steps and precautions in accordance with good
oilfield practices in the area of operations to drill a hole which will not deviate
from the limits specified by Operator. Contractor shall run angle measuring
devices acceptable to and at such intervals as may be directed by Operator.

9.5 DRILL PIPE MEASUREMENT

Contractor shall measure the total length of drill pipe in service with a
steel tape before setting casing or liner, before logging, after reaching final
depth, and whenever requested by Operator and promptly enter all such
measurements in the daily drilling report.

9.6 PREVENTION OF FIRE AND BLOWOUT

(a) Contractor shall use the Blowout Prevention Equipment specified in this
Agreement, on all strings of casing unless otherwise directed by
Operator. Contractor shall maintain Well Control Equipment in good
condition at all times and shall take all reasonable and possible steps to
control and prevent blowouts and fire and to protect the Well.

(b) Contractor shall test the Blowout Prevention devices by making a pressure
test at least once every seven (7) days or at such other times as instructed
by Operator's representative. Contractor shall record the results of
all such tests in Daily Drilling Report. Replacement of all blowout
prevention rubber parts shall be on Contractor's account.

(c) Contractor shall use all reasonable means to keep the hole and all strings
of casing filled with Drilling mud at all times.

(d) Contractor shall use kelly sub-protectors and, if directed by Operator,

drill pipe casing protectors of an approved type.

ONGC/MM/03/(28)
9.7 DISCIPLINE

Contractor shall carry out operations hereunder with due diligence and in
a safe and workman like manner according to good international oilfield
practice.

Contractor and Operator shall maintain strict discipline and good order
among their respective employees, and their respective sub-contractor's
employees, if any, and shall abide by and conform to all rules and instructions
promulgated by Operator and Contractor governing the Drilling Operations.
Should Operator feel for just cause, that the conduct of any of Contractor's or
its sub-contractor's personnel is detrimental to Operator's interests, Operator
shall notify Contractor in writing for removal of such personnel Contractor shall
remove immediately and replace such an employee/employees at Contractor's
expense within seven (7) days. If no replacement has been provided within
this time the Operator shall reduce the daily rate by the amount specified
for this category in Exhibit "_____" until such replacement has been provided.
The person so removed shall not be employed again without the prior written
consent of the Operator. Contractor shall not permit any of its employees,
representatives, agents or sub-contractors to engage in any activity which
might reasonably be considered to be contrary or detrimental to the interest of
the operator.

9.8 SAFETY

Contractor shall take all measures necessary or proper to protect the

personnel, work and facilities and shall observe all reasonable safety rules and
instructions. No smoking shall be permitted out side the living quarters, and
welding jobs will be carried out with full safety precautions. operators employee
also shall comply with safety procedures/policy.

10.0 COMPLETION OR ABANDONMENT

Contractor agrees to perform all work necessary to drill, complete or

abandon each well in the manner specified by operator.

11. SAMPLES, CORING AND CORES AND FORMATION TESTS

11.1 SAMPLES

Contractor shall have and preserve for Operator, samples of formation

penetrated and properly prepare and label Operator's containers. The
frequency at which samples are to be obtained, shall be designated by
Operator.

11.2 CORING AND CORES

Contractor shall core at such depths as Operator shall specify and shall
deliver all cores as recovered, in Operator's containers, properly labeled, to
Operator and shall not allow any third party access to said cores or samples
or any date without Operator's prior written consent.

ONGC/MM/03/(29)
11.3 FORMATION TESTS

If during the course of Drilling any well, Contractor encounters evidence

of Oil or Gas, Contractor shall immediately notify Operator and, should
Operator decide to carry out a test to determine the productivity of the formation
so encountered Contractor shall carry out such test under existing conditions, as
mutually agreed.

12.0 RECORDS TO BE FURNISHED BY CONTRACTOR

12.1 WELL RECORDS

Contractor shall keep an authentic log and history of each well on the
daily drilling report prescribed by Operator and, upon completion or
abandonment of the well, deliver to Operator the original history and log book,
properly signed, and all other data and records of every nature relating to the
drilling, casing and completion of the well. Such report shall include the depth
drilled, formations encountered and penetrated, depth cored and footage of
cores recovered and any other pertinent information relating to the well.

12.2 WAREHOUSE RECORDS

Contractor shall deliver to Operator delivery receipts, boat manifests, and

other warehouse records received by Contractor covering any material or
supplies furnished by Operator. The quantity, description and apparent
condition of materials and supplies so received shall be confirmed by Contractor.

13.0 PERMITS & LICENCES

13.1 INGRESS AND EGRESS AT LOCATIONS

Operator hereby agrees that it shall provide Contractor with all

necessary rights of ingress/egress to and possession of the location where
the well is to be located including any drilling permits or licenses required
for the performance by Contractor of all works contemplated by this
Agreement. In the event of any restrictions, conditions, or limitations in
Operator's permit, which would affect the free right of ingress, egress and
possession to be exercised by Contractor hereunder, its employees or its sub-
contractors, Operator agrees promptly to advise Contractor in writing with
respect to such restrictions, conditions or limitations and Contractor agrees to
observe the same. Should Contractor be denied the access to or possession of
the location for any reason, any time lost and other expenses incurred by
Contractor as a result of such denial shall be paid in accordance with Article 3.

13.2 DRILLING UNIT LICENCES

Contractor agrees that it shall secure permits and licences for operations of
the Drilling Unit in Indian waters, if required and Contractor shall pay any expenses
in this regard.

ONGC/MM/03/(30)
 It is the responsibility of the Contractor to obtain Naval Defence Clearance
of Drilling Unit prior to commencement of contract from Ministry of Defence through
Ministry of Petroleum and Natural Gas (India), at his cost.

It is the responsibility of the Contractor to obtain all necessary permissions

and clearances from the concerned statutory authorities, for operating the Drilling
Unit in Indian waters, at his cost.

Contractor shall ensure that the Drilling Unit is classed and confirm that they
would obtain permission / clearance of DG Shipping, wherever required for
operating the Drilling Unit in Indian waters, at their cost.

However, for obtaining Naval Defence Clearance and other necessary

permissions and clearances from the statutory authorities, Operator shall issue
forwarding letter upon request from Contractor supported by all relevant valid
documents.

14.0 INSURANCE AND INDEMNITY AGREEMENTS

14.1 INSURANCE

Contractor shall procure at Contractor's expense and maintain with

respect to and for the duration of this Agreement the insurance policies
described below preferably by Indian insurance companies and with policy
limits indicated below.

(BL/03/23 dated 26.04.2011)

14.1.1 WORKMEN’S COMPENSATION AND EMPLOYER’S LIABILITY

INSURANCE

Contractor shall ensure and provide all its personnel adequate insurance
cover for compensation to be paid under Employees’ Compensation Act, 1923
and Employer’s Liability Act, 1938 and / or any other applicable law(s) in respect
of accident or injury that may be caused to them in the course of their
deployment in the area of operation under this Contract. Employer’s Liability
Insurance including appropriate maritime coverage shall be provided to all the
personnel of the Contractor to meet the requirement of this clause or the
applicable statute, whichever is greater.

14.1.2. COMPREHENSIVE GENERAL LIABILITY INSURANCE

Comprehensive General Liability Insurance shall cover premises,

operations, independent Contractors and blanket contractual liability including
but not limited to the insurable liabilities assumed under the indemnity
Agreement in Article 14.6 :- Coverage shall indicate that Marine Operations
are covered unless such operations are covered by insurance referred to as
below:

Bodily injury/: Rs.10.00 crores

property damage Single limit per accident per occurrence.

ONGC/MM/03/(31)
 This coverage shall be endorsed to waive all rights of subrogation
against Operator to the extent Contractor has given indemnities under the
contract. This policy also shall cover contingent and contractual liability.

14.1.3 MARINE INSURANCE

Marine Insurance Policy shall be All risk London standard Drilling

Barge form and other comparable forms or coverages used in American and
foreign markets on the Drilling Unit owned or chartered by Contractor and
utilised in the performance of this Agreement with policy limits equal to the value
of the equipment.

14.1.4 COMPREHENSIVE GENERAL AUTOMOBILE LIABILITY.

Comprehensive General Automobile Liability shall cover all owned, hired and
non-owned vehicles.

Bodily injury : According to local laws.

Property damage : According to local laws.

14.1.5 PROTECTION AND INDEMNITY LIABILITY

Protection and indemnity liability insurance policy if available in India,

shall cover each occurrence of bodily injury including death and property
damage payable in India.

(BL/03/36 dated 12.09.2016)

14.1.6 Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri
Jeevan Jyoti Bima Yojana (PMJJBY).

Contractor shall, ensure that all his/ its personnel deployed under this
contract have obtained additional insurance coverage under the Pradhan Mantri
Suraksha Bima Yojana (PMSBY) and Prashan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY) through the participating banks and submit the proof of such insurance
coverage to the satisfaction of ONGC for defraying the cost of the insurance
premium amount under the contract. The contractor shall also certify that the
claim has not been preferred in the earlier contract of ONGC or otherwise.

ONGC after satisfying by verifying the required documents shall release

the premium amount to contractor. In case a member is covered through more
than one account, insurance cover will be restricted to one only.

14.2 WAIVER OF SUBROGATION

All insurance policies of the Contractor with respect to the operations

conducted hereunder as set forth in Article 14 hereof, shall be endorsed by
the underwriter in accordance with the following policy wording:-

"The insurers hereby waive their rights of subrogation against any

individual, Company, Affiliates or Assignees for whom or with whom the
assured may be operating to the extent of the contractual indemnities
ONGC/MM/03/(32)
undertaken by the Contractor."

The provisions of this paragraph do not apply to Subcontractors of

Operator. Operator is to obtain a reciprocal endorsement in favour of Contractor
on policies maintained by Operator.

14.3 CERTIFICATE OF INSURANCE

Before commencing performance of the Agreement, Contractor shall upon

request, furnish Operator with certificates of insurance including (1) kinds and
amounts of insurance as required herein, (2) Insurance Company or
Companies carrying the aforesaid coverages, (3) effective and expiration dates
of policies, (4) that Operator will be given thirty (30) days written advance notice
for any material change in the policy, (5) waiver of subrogation endorsement
has been attached to all policies, (6) the territorial limits of all policies. If any of
the above policies expire or are cancelled during the term of this Agreement and
Contractor fails for any reason to renew such policies, then Operator may
replace same and charge the cost thereof to Contractor.

Should there be a lapse in any insurance required to be carried by

Contractor under sub-article (1) through (5) of Article 14.1 (A) of this Agreement,
for any reason whatsoever, losses resulting therefrom shall be for the sole
account of Contractor.

14.4 DEDUCTIBLE

That portion of any loss not covered by insurance provided for in this
Article 14 solely by reason of a deductible provision in such insurance policies
shall be for the account of Contractor.

14.5 SUBCONTRACTORS

Contractor shall require all of its Sub-contractors to provide such of the

fore-going insurance coverages as Contractor may consider necessary.

14.6 INDEMNITY AGREEMENTS

(a) Contractor agrees to protect, defend, indemnify and hold Operator

its co-leases, its agents, if any, its other Contractor’s and/or their employees
harmless from and against all claims, suits, demands and causes of action,
liabilities, expenses, costs, liens, rights in rem, and judgements of every kind
and character, without limit, which may arise in favour of Contractor,
Contractor's employees, agents, sub-contractor’s or their employees, on
account of bodily injury or death of Contractor’s employees, agent, sub-
contractor or sub- contractor’s employee or damage to said employee’s
property as a result of the operations, contemplated hereby, regardless of
whether said claims, demands, or causes of action arise out of negligence
or otherwise, in whole or in part, unseaworthiness or other fault, including
pre-existing conditions of Operator, its contractor’s other than the
Contractor, sub-contractors, partners, Joint Ventures, their employees or
Agents.

ONGC/MM/03/(33)
 (b) Operator agrees to protect, defend indemnify and hold Contractor
and its sub-contractors, its agent and its affiliates, its other contractors and /
or their employees harmless from and against all claims, suits, demands
and causes of action, liabilities, expenses, costs, liens, rights in rem and
judgements of every kind and character, without limit, which may arise in
favour of Operator, Operator’s employees, Agents, invitees, contractors
(other than Contractor) and sub-contractors or their employees, on account
of bodily injury or death of Operator’s employees, agents, invitees,
contractors (other than Contractor) and sub-contractors or damage to said
employees or its property (including any property of Operator) as a result of
the operations contemplated hereby, regardless of whether or not said
claims, demands or causes of action arise out of the negligence or
otherwise in whole or in part, unseaworthiness or other faults, including pre-
existing conditions of Contractor, its sub-contractors, partners, Joint
Venturers, employees or agents.

(BL/03/24 dated 02.02.2012)

14.7 POLLUTION AND CONTAMINATION

Notwithstanding anything to the contrary contained herein, it is understood and

agreed by and between the Contractor and Operator that the responsibility for
pollution or contamination shall be as follows:

(a) The Contractor shall assume all responsibility for cleaning up and
controlling pollution or contamination which originates above the surface of the
water from spills or fuels, lubricants, motor oils, normal water base drilling fluid
and attendant cuttings, pipe dope, paints solvents, ballast, bilge and garbage
wholly in Contractor's possession and control and directly associated with
Contractor's equipment and facilities, provided, however, Contractor's liability
shall be limited to US Dollars One Million (US$ 1 Million) where after the
Operator shall indemnify and hold harmless Contractor for amounts in excess.

(b) Except as otherwise provided in article 14.7(a), Operator shall assume

all responsibility for (including control and removal of the pollutant involved)
and shall protect, defend and save the Contractor harmless from and against
all claims, demands, and causes of action of every kind and character arising
from all pollution or contamination, other than that described in sub-clause (a)
above, which may occur from any cause including negligence of Contractor
but not limited to, that which may result from fire, blowout, cratering, seepage
of any other uncontrolled flow of oils, gas, water or other substances, as well
as the use or disposition of oil emulsion, oil base or chemically treated drilling
fluids, contaminated cuttings or caving, lost circulation and fish recovery
materials and fluids provided however, Contractor's sole liability under this
sub-clause is to reimburse Operator US Dollars One Million (US$ 1 Million) of
cost paid/incurred by Operator in control of the pollutant, clean up costs, or
damage to a third party, provided said pollution results from contractor's sole
negligence.

In the event a third party commits an act or omission which results in

pollution or contamination for which either the Contractor or Operator, for whom
such party is performing work, is held to be legally liable the responsibility
ONGC/MM/03/(34)
 therefor shall be considered as between the Contractor and Operator, to be the
same as if the party for whom the work was performed and all of the
obligations respecting defense indemnity, holding harmless and limitation of
responsibility and liability as set forth in (a) and (b) above, shall be specifically
applied.”

14.8 Unless otherwise stated, all the indemnities and allocation of risk
provisions contained in this Agreement shall apply without regard to fault or
negligence.

For the purpose of this Agreement, "negligence" mean the reckless,

willful or wanton disregard to the probable consequences of an act.

In the interpretation of this Agreement, indemnities provided herein

shall take -precedence over the remaining provisions hereof.

15.0 CLAIMS, TAXES, FEES AND ACCOUNTING

15.1 CLAIMS

Contractor agrees to pay all claims, taxes, and fees for equipment,
labour, materials, services and supplies to be furnished by it hereunder and
agrees to allow no lien or charge resulting from such claims to be fixed upon
any well or other property of Operator , Operator may, if required by any
competent authority after notifying Contractor pay and discharge any lawful lien
or valid overdue charges for Contractor's equipment, labour, materials,
services and supplies under this Agreement and may thereupon deduct the
amount or amounts so paid by Operator from any sums due, or thereafter
becoming due, to Contractor hereunder.

15.2 NOTICE OF CLAIMS

Contractor or Operator, as the case may be, shall promptly give the
other, notice in writing of any claims made or proceedings commenced for
which that party is entitled to indemnification under this Agreement. Each party
shall confer with the other concerning the defense of any such claim of
proceedings and shall permit the other to be represented by Counsel defense
thereof, and shall not effect settlement of or compromise any such claim or
proceedings without the other's written consent.

15.3 WITHHOLDING, ACCOUNTING AND TAX REQUIREMENTS

(Applicable both for Indian and foreign bidders)

Contractor agrees for withholding from wages and salaries of its
agents, servants, or employees all sums required to be withheld by the laws of
the Republic of India or any other agency having jurisdiction over the area
where Contractor is conducting operations, and to pay the same promptly when
due to the proper authority.

(Applicable for foreign parties)

Contractor further agrees to comply with all accounting and reporting
requirements of any nation having jurisdiction over the subject matter hereof and
ONGC/MM/03/(35)
to conform to such laws and regulations and to pay the cost of such compliance.
If requested by Operator, Contractor will furnish to operator evidence of payment
or applicable taxes in the host country, on contractors expatriate employees.

(BL/03/28 dated 16.04.2014)

15.4 CORPORATE TAXES:

15.4.1 The CONTRACTOR shall bear all direct taxes, levied or imposed on the
CONTRACTOR under the laws of India, as in force from time to time.

The CONTRACTOR shall also be responsible for ensuring compliance

with all provisions of the direct tax laws of India including, but not limited to, the
filing of appropriate Returns and shall promptly provide all information required by
the CORPORATION for discharging any of its responsibilities under such laws in
relation to or arising out of the CONTRACT.

15.4.2 Tax shall be deducted at source by ONGC from all sums due to an Indian
tax resident Contractor in accordance with the provisions of the Income Tax Act,
1961, as in force at the relevant point of time.

15.4.3 A non-resident Contractor i.e., a Contractor who is not an Indian tax

resident according to the Indian Income Tax Act, 1961, has the option to obtain
on its own either (A) a Certificate u/s. 195(3) of the Income Tax Act, 1961, or (B)
a Certificate u/s. 197 of the Income Tax Act, 1961, and furnish the said Certificate
u/s. 195(3) or the Certificate u/s.197, as the case may be, to ONGC along with
each of its Invoices. In case the non resident Contractor wishes to exercise this
option, it should convey the same in writing to ONGC at the time of signing the
Contract and an option so exercised shall be final and cannot be changed during
the currency of this Contract. In case an option is so exercised, ONGC shall
deduct tax at source in accordance with the directions contained in the Certificate
u/s. 195(3) or the Certificate u/s. 197, as the case may be, as in force at the point
in time when tax is required to be deducted at source.

15.4.4 In case the non resident Contractor does not exercise the option in clause
15.4.3 above, an Order u/s. 195(2) of the Income Tax Act, 1961, for the purpose
of deduction of tax at source will be obtained by ONGC from the Indian Income
Tax Department and tax shall be deducted at source by ONGC as directed in the
said Order u/s. 195(2).

The Corporation, at its discretion, may obtain a Certificate in Form 15CB from a
practicing Chartered Accountant in lieu of obtaining an Order u/s 195(2) from
Income Tax Department, and , in such case, TDS shall be regulated as per the
said Certificate in Form 15CB

15.4.5 In case the non resident Contractor does not exercise the option in clause
15.4.3 above, it shall furnish a Tax Residency Certificate issued by the
Government of country or specified territory to the effect that the person named
therein is a resident of that country or specified territory and Form No. 10F
Appendix-3).

ONGC/MM/03/(36)
15.4.6 If it is not possible for the non-resident to obtain & submit Tax Residency
Certificate and Form No. 10F to ONGC within a reasonable time, he should
furnish an undertaking to the effect that he is a tax resident of _______________
(the specified country) and that he shall obtain and provide the TRC and Form
No. 10F to ONGC before 30 days of submission of first Invoice by them or within
3 months from the date of entering into the contract whichever is earlier.
Contractor should note that any delay in submission of TRC/PE information
within the specified time may lead to the Income Tax Department directing
ONGC to deduct tax at a higher rate than at which it may otherwise have
directed. Such increased tax liability shall be recovered from the contractor.

15.4.7 As per the provisions of Section 206AA of Indian Income Tax Act, 1961,
effective from 01.04.2010, any person entitled to receive any sum or income or
amount, on which tax is deductible under the provisions of Act, is required to
furnish his Permanent Account Number (PAN) to the person responsible for
deducting tax at source. Therefore, in case the Contractor does not furnish its
PAN, CORPORATION shall deduct tax at source as provided in the Income Tax
Act, 1961, or in the relevant Finance Act, or as directed in the Certificates u/s
195(3) or 197 or Order u/s 195(2) or as per Certificate obtained in Form 15CB, as
the case may be, or at such higher rate as may be required by Section 206AA of
Indian Income Tax Act, 1961, from time to time.

15.4.8 The employees of such foreign companies/concerns/Joint Ventures, their

SUB-CONTRACTOR and assignees are also required to comply with various
Direct tax laws of India, as applicable.

15.4.9 For the lapses, if any, on the part of the CONTRACTOR and
consequential penal action taken by the Income Tax department, the
CORPORATION shall not take any responsibility whether financial or otherwise.

“Notes in respect of Tax Residency Certificate’,

(i) The Tax Residency Certificate (TRC) should be in original or a photocopy

duly attested either from a notary public in India or from the Indian
Embassy/High Commission/Consulate in the country whose authorities
have issued such TRC.

(ii) During the currency of the Contract / Purchase Order, for the income
accrued in different financial years, the Contractor/Supplier should submit
TRC(s) and Form No. 10F valid for the entire duration of the contract. In
case the validity of a TRC and Form No. 10F expires during the currency
of the contract, fresh valid TRC(s) and Form No. 10F should be
submitted by the supplier/contractor for the remaining part of the currency
of the contract.

ONGC/MM/03/(37)
(BL/03/39 dated 24.08.2017)

15.5 PAYMENT OF GST

CONTRACTOR, unless specified otherwise in the Agreement, shall bear

all tax liabilities, duties, Govt. levies etc. including GST and customs duty,
Corporate and personnel taxes levied or imposed on the CONTRACTOR on
account of payments received by it from the Operator for the work done under
this Agreement. It shall be the responsibility of the CONTRACTOR to submit to
the concerned Indian authorities, the returns and all other concerned documents
required for this purpose and to comply in all respects with the requirements of
the laws in this regard, in time.

CONTRACTOR shall provide all the necessary compliances/ invoice /

documents for enabling Operator to avail Input tax credit benefits in respect of
the payments of GST which are payable against the Agreement. The
CONTRACTOR should provide tax invoice issued under GST legislations for the
goods and Services (indicating GST). Payment towards the components of GST
shall be released by OPERATOR only against appropriate documents ie: Tax
Invoice.

The tax invoices as per above provisions should contain all the particulars as
required under the invoicing rules under the GST legislations, including, but not
limited to the following:

(i) Name, Address and the GST Registration Number (under the relevant
Tax Rules) of the Service Provider (Contractor)

(ii) Name and Address and GST Registration Number of the Service
Receiver (Address of Operator)

(iii) Description, Classification and Value of taxable service / goods and the
amount of applicable tax (CGST, SGST, IGST, UTGST and cess)

(iv) In case of imported goods, contractor/supplier is required to provide

original Bill of entry or copy of Bill of Entry duly attested by Custom authority.

(v) The Contractor should mention the Place of supply in the invoice raised
under GST Law.
(vi) Operator would not accept any invoice without its GSTIN mentioned on
the invoice

Note : Contractor who is under composition levy of the GST legislation would
raise Bill of supply instead of Tax invoice which will have GSTIN of supplier as
well as Operator.

GST LEGISLATIONS:

‘GST legislations’ means ‘any or all of the following legislations as may be

applicable to the Bidder/Contractor and Operator:
i. the Central Goods & Services Tax Act, 2017;
ii. the Integrated Goods & Services Act, 2017;
ONGC/MM/03/(38)
iii. the Union Territory Goods & Services Tax Act, 2017;
iv. the respective State Goods & Service Tax Acts’
v. the Goods and Services (Compensation to States) Act, 2017
vi. the Customs Act and the Customs Tariff Act.

15.5.1 – Deleted –

(BL/03/39 dated 24.08.2017)

15.6 CUSTOMS DUTY (BCD + IGST): -

(applicable for Charter hire services using CONTRACTOR’s capital equipment

like rigs/equipments/tools/vessel etc and for petroleum operations, where
concessional Customs duty is applicable as per the policy of Govt. of India in
vogue).

As per Sl. No. 404 of Customs Notification No. 50/2017-Cus dated

30.06.2017, the goods required for petroleum operation for eligible areas,
as mentioned in list 33 of said notification, would attract 5% Customs Duty
(BCD Nil & IGST @ 5%) subject to submission of EC.

All imports (rigs/equipments/vessel/tool/spares, consumables and accessories)

and import clearance under the contract including payment of Customs Duty shall
be the responsibility of the Contractor.

For import of rigs/equipments/vessel/tool/spares, consumables and accessories

for execution of contract for petroleum operations, Operator will provide
Recommendatory Letter (RL) to the contractor so that they can obtain
Essentiality Certificate (EC) from DGH for availing concessional rate of Customs
duty for import of rigs/equipments/vessel/tool/spares, consumables and
accessories. Accordingly, only concessional rate of the Customs duty for
rigs/equipments/vessel/tools, spares, consumables and accessories required for
operation and maintenance of equipment/rigs and equipments is to be
considered while quoting. As regards, re-export of rigs/equipments/vessel/tools
(owned or on lease basis) brought by the contractor (whether Indian or foreign)
for petroleum operation, as the rigs/equipments/vessel/tools would be imported
by the contractor with payment of concessional rate of CUSTOMS DUTY; after
expiry of the contract with Operator, the contractor would have to either re-export
the rigs/equipments/vessel/tools or deploy the rigs/equipments/vessel/tools for
petroleum operations in areas where concessional rate of Customs Duty is
applicable after getting a fresh EC from DGH. The contractor shall also have to
indemnify the Operator against any claim that may arise due to violation of the
Customs Act or the Foreign Trade Policy by them. In case any
rigs/equipments/vessel/tools are required to be replaced by the contractor during
the execution of the contract, the Operator shall issue a fresh RL so that
contractor can obtain a fresh EC from the DGH and bring the
rigs/equipments/vessel/tools on payment of concessional rate of Customs Duty.

All imports under the contract shall be done with Operator’s prior approval
only. The Contractor shall be responsible to carry out all the formalities. In case
ONGC/MM/03/(39)
of any mis-declarations or offences committed under the Customs rules and
regulations and also allied rules, fine, penalty or any other charges levied by the
concerned authorities on Operator shall be borne by the Contractor including the
element of interest on Operator’s funds blocked under such circumstances.
Operator shall be indemnified by the Contractor against all actions by Govt. or
any other agency for acts of commission and omission.

Contractor shall be responsible to import the rigs/equipments/vessel/tools for

execution of the contract. The contractor shall undertake to complete all the
formalities as required under the Customs Act / Foreign Trade Policy (FTP) and
indemnify OPERATOR from all the liabilities of Customs in this regard.

The rigs/equipments/vessel/tools imported by the Contractor for petroleum

operations against the EC provided by DGH against RL issued by OPERATOR
shall not be used / deployed by the Contractor for any purpose other than the
jobs arising out of the contract awarded by Operator and in the event of the
rigs/equipments/vessel/tools being misused or put to use other than specified
use, the Contractor shall be liable to pay fine, penalty and other actions taken by
the Customs department and other authorities for violation of the customs rules
and regulations and other allied rules. Contractor should also compensate
Operator for the duty element in such cases.

Similarly in case of deployment of equipment by a contractor on ownership basis

under concessional rate of Customs Duty under Sl. No. 404 of notification no.
50/2017-Cus for ONGC contracts, if after the expiry of contract such equipment
are deployed for other licensee/contractor, then the contractor has to comply with
condition of the said notification and indemnify OPERATOR against any claim
arising out of non-compliance of the said notification.

The Contractor shall produce “No Due Certificate” from the Customs Department on
completion of Agreement. In case Customs Department refuses to issue such a
certificate to the Contractor, the Contractor shall submit an Indemnity / Undertaking
to Operator as per proforma at Annexure – II (Appendix -2) of tender document.

CUSTOMS DUTY: - (applicable for Charter hire services using Contractor’s capital
equipment like rigs/equipments/tools etc. and for non-PEL/ML areas where
Customs Duty is payable). – Deleted -

15.7 TAXES, DUTIES AND LEVIES

Except under the provisions in the Clause 15.5 and 15.6 above, the Operator
shall not be liable to pay or reimburse any taxes, duties and levies including but
not limited to the taxes, duties and levies imposed on the income of the
Contractor, its employees or any taxes, levies etc. on any purchases made by
the Contractor/its employees or sub-contractor.

ONGC/MM/03/(40)
(BL/03/39 dated 24.08.2017)
15.8 CHANGE IN LAW:

15.8.1 In the event of introduction of any new legislation or any change or

amendment or enforcement of any Act or Law, rules or regulations of
Government of India or State Government(s) or Public Body which becomes
effective after the date of tender closing for this CONTRACT and which results
in increase in rate of taxes and duties on the supply of services to OPERATOR
under the CONTRACT (other than personnel and Corporate taxes), the
CONTRACTOR shall be indemnified for any such increased taxes and duties by
the OPERATOR subject to the production of documentary proof to the
satisfaction of the OPERATOR to the extent which directly is attributable to such
introduction of new legislation or change or amendment as mentioned above and
adjudication by the competent authority & the courts wherever levy of such taxes
/ duties are disputed by OPERATOR.

15.8.2 Similarly, in the event of introduction of new legislation or any change or

amendment or enforcement of any Act or Law, rules or regulations of
Government of India or State Government(s) or Public Body which becomes
effective after the date of tender closing for this CONTRACT and which results in
any decrease in the rate of taxes and duties on the supply of services to
OPERATOR, (other than personnel and Corporate taxes), the CONTRACTOR
shall pass on the benefits of such reduced cost, taxes or duties to the
OPERATOR, to the extent which is directly attributable to such introduction of
new legislation or change or amendment as mentioned above..

15.8.3 All taxes & duties (except where otherwise expressly provided in the
Contract) as may be levied / imposed in consequences of execution of the
Services or in relation thereto or in connection therewith as per the Acts, Laws,
Rules, Regulations in force on the date of tender closing, for the this CONTRACT
shall be to CONTRACTOR’s account. Any increase / decrease in the rate of
such duties, taxes after the date of tender closing, but within the contractual
completion / mobilization date as stipulated in the CONTRACT will be to the
account of OPERATOR.

15.8.4 Any increase in the rate of taxes & duties after the contractual completion
/ mobilization date during the extended period will be to the contractor’s account,
where delay in completion /mobilization period is attributable to the
CONTRACTOR. However, any decrease in the rate of taxes and duties after the
contractual completion / mobilization date will be to OPERATOR’s account.

15.8.5 The Contract Price and other prices given in the Schedule of Prices are
based on the applicable tariff as indicated by the CONTRACTOR in the Schedule
of Prices. In case this information subsequently proves to be wrong, incorrect or
misleading, OPERATOR will have no liability to reimburse/pay to the
CONTRACTOR the excess duties, taxes, fees, if any finally levied / imposed by
the concerned authorities. However, in such an event, OPERATOR will have the
right to recover the difference in case the rate of duty/tax finally assessed
is on the lower side.

ONGC/MM/03/(41)
15.8.6 Notwithstanding the provision contained in clause 15.8.1 to 15.8.4 above,
the OPERATOR shall not bear any liability in respect of :

(i) Personal taxes on the personnel deployed by CONTRACTOR, his

sub-contractor / sub-sub contractors and Agents etc.

(ii) Corporate taxes and Fringe benefit tax in respect of contractor and
all of their sub-contractors, agents etc.

(iii) Other taxes & duties including Customs Duty, and GST in addition
to new taxes etc. in respect of sub-contractors, vendors, agents
etc. of the CONTRACTOR.

15.8.7 The above provisions would be applicable only in case of variation in rate
of taxes and duties on supply of services to OPERATOR and not applicable on
taxes and duties on input (goods and services) .

15.8.8 Any claim or reduction on account of change in law shall be accompanied

with undertaking that the provisions of anti-profiteering clause under GST Act
have been complied with.

16.0 RESPONSIBILITY FOR LOSS OF OR DAMAGE TO THE EQUIPMENT

OR THE HOLE.

16.1 Except as otherwise specifically provided in this Agreement, any damage to

or loss, of the Drilling Unit (which, for the purpose of this Article 16.1 shall be
deemed to include all Contractor's and its sub-contractors equipment) and
regardless of the cause or reason for said loss, shall be the loss of the Contractor
its underwriters or insurers and Contractor agrees to protect, defend, indemnify
and hold Operator, its co-licensees and its and their affiliate companies, agents,
employees, invitees, servants, their underwriters or insurers (other than
Contractor's) and their employees harmless against any claim whatsoever or
responsibility for any damage to or loss of the Drilling Unit or any other
equipment or property of Contractor or Contractor's sub-contractors furnished or
intended for use in the operations herein undertaken.

16.2 If the Drilling Unit or any part thereof is lost or damaged beyond repair or
becomes an actual or constructive compromised, arranged loss or obstruction to
navigation or the operations of the Operator or is otherwise abandoned, the
Contractor shall, if required by Operator or by the laws regulation or order of
Governmental authorities or agency remove the Drilling Unit at Contractors own
cost from Offshore area to the satisfaction of the Operator. If the Contractor
unreasonably delays in removing the Drilling Unit or any part thereof, the
Operator may remove it and the Contractor shall indemnify and reimburse
Operator for all cost and expenses incurred by the Operator in connection
therewith. Any expense incurred by the Operator in connection with or for
locating the area/ price of such loss/ damage and/ or to ascertain whether such
loss/ damage has resulted in any pollution or not, shall also be reimbursed by the
Contractor to Operator.

ONGC/MM/03/(42)
(BL/03/39 dated 24.08.2017)
16.3 LOSS OR DAMAGE TO CONTRACTOR'S DOWN HOLE EQUIPMENT

Operator shall reimburse Contractor for loss of or damage to

Contractor's downhole 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.

(a) In the case of Contractor's down-hole equipment being damaged,

Operator will reimburse Contractor such repair cost, provided however, that
Operator shall not be required 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) herein below.

(b) In the case of Contractor's down hole equipment being lost, Operator will
reimburse Contractor 75% of the replacement cost, FOB nearest port of the vendor.

Operator will provide Recommendatory Letter on request of the Contractor (for

items applicable) for obtaining Essentiality Certificate from DGH for availing benefit
of CONCESSIONAL RATE OF CUSTOMS DUTY/TAXES. The responsibility of
obtaining EC from concerned authorities lies with Contractor and Operator will not
be liable to the Contractor for whatsoever reasons.

16.4 LIABILITY FOR THE WELL

Operator shall be liable for the cost of regaining control of any wild Well,
as well as the cost of removal of debris and shall defend, indemnify and hold
Contractor harmless, for any such cost, regardless of the cause thereof, including
but not limited to the negligence of Contractor, its agents, employees or sub-
contractors. Operator shall be responsible for and shall defend, indemnify and
hold harmless Contractor from any claims in respect of loss or damage to the
hole or Well. In the event the hole is lost or damaged because of the negligence
of Contractor, Contractor's sole responsibility thereafter shall be the obligation to
repair such damage within the limits of Contractor's normal complement of
equipment and personnel or redrill the hole in the same Well or an alternate Well
to the depth at which, such hole was lost at a rate equal to fifty (50) percent of the
Operating Rate only by deploying the Drilling Unit and personnel provided
however, that in the case of any relief Well, Operator shall be solely responsible
for all other costs or damage with respect to such loss or damage, regardless of
the cause of such loss or damage.

16.5 DAMAGE TO PIPELINE, PLATFORMS OR DRILLING RIGS

Contractor shall be responsible and hold Operator harmless for any

damages to pipeline, platforms, drilling rigs (other than Drilling Unit), vessels and
damage or loss of materials or equipment of Operator and/or other third party
materials or equipment in the area of operation for reasons attributed to the gross
negligence of the Contractor, provided that Contractor’s liability shall not exceed
Rupees Twenty Lakhs per occurrence. The Operator shall be responsible for and
shall indemnify and hold Contractor harmless for all amounts in excess thereof.

ONGC/MM/03/(43)
17.0 BLOWOUT OR CRATER

17.1 COST OF CONTROL OF BLOWOUT

(BL/03/24 dated 02.02.2012)

In the event any Well being drilled hereunder shall go out of control
(Blowout) due to any causes, Contractor will bear the cost and expense of killing
the Well or otherwise bringing the Well under control upto US Dollar One Million
for each incident and in this regard Operator shall indemnify and hold Contractor
harmless in excess of US Dollar One Million for each incident. This applies only
to the cost of bringing the well under control and is not to be interpreted as an
assumption by Operator of any liability for injuries, to Contractor’s personnel and
or damage to the Drilling Unit, caused by such blowout to the Contractor, except
as otherwise provided under the terms and conditions of this Agreement.

17.2 USE OF CONTRACTOR'S EQUIPMENT.

Subject to clause 9.1, Operator shall have the right to use the Drilling Unit
and all of Contractor's equipment and personnel provided under this Agreement
during such times as Operator or both Operator and Contractor are engaged in
bringing a Well under control and Drilling Unit will perform all activities related to
Well control.

18.0 UNDERGROUND DAMAGE

18.1 Operator agrees to indemnify and hold Contractor harmless from any and
all claims against Contractor based on any incidents arising out of or occurring
during the term of this Agreement on account of injury to, destruction of or loss
or impairment of any property rights in or to oil, gas or other mineral substance
or water if at the time of the act or omission causing such injury, destruction,
loss or impairment such substances had not been reduced to physical
possession above the surface of the earth, and including any loss or damage
to any formation strata or reservoir beneath the surface of the earth.

19.0 WAIVERS AND AMENDMENTS

19.1 WAIVERS

No term or condition shall be deemed waived/amended unless such

waiver/amendment is mutually agreed to by both the parties and is executed in
writing by the duly authorised agents or representatives of the parties.

19.2 AMENDMENTS OF DRILLING AND COMPLETION PROGRAMME

It is agreed that Contractor shall carry out drilling, coring, testing,

completions, abandonment and any and all other operations, in accordance with
the Well drilling and completion programme to be furnished by Operator, which
may be amended from time to time by modifications as Operator deems fit,
ONGC/MM/03/(44)
subject, however within the capability of Drilling Unit, in accordance with good
oilfield practices as envisaged under this Contract.

20.0 LOSS OF DRILLING UNIT

If the Drilling Unit is declared to be a total loss and/or construed to be

total loss, as determined by the applicable insurance coverage, this Contract
shall terminate in respect of that drilling unit(s) as of the occurrence of the event
causing such loss and each party shall thereupon be released of all
further obligations hereunder in respect of that drilling unit(s), except for its
payment of monies then due or liabilities to be discharged in respect of work
already done under this Contract in respect of that drilling unit(s).

21.0 FORCE MAJEURE

21.1 CONDITIONS FOR FORCE MAJEURE

(BL/03/38 dated 27.01.2017)

In the event of either party being rendered unable by Force Majeure to
perform any obligation required to be performed by them under this Agreement,
the relative obligation of the party affected by such Force Majeure shall, upon
notification to the other party be suspended for the period during which such
cause lasts.

The term “Force Majeure” as employed herein shall mean Act of God,
floods, tempest, war, civil riot, fire and Acts, Rules and Regulations of respective
government of the two parties namely ONGC and the Contractor, directly
effecting the performance of the Contract.

Upon the occurrence of such cause and upon its termination, the party
alleging that it has been rendered unable as aforesaid thereby, shall notify the other
party in writing within seventy-two hours of the alleged beginning and ending
thereof, giving full particulars and satisfactory evidence in support of its claim.

Time for performance of the relative obligation suspended by the Force

Majeure, shall then stand extended by the period for which such cause lasts.

Such Force Majeure situations shall be paid at 2/3rd of Non-operating rate

for a period of first fifteen days, and if such Force Majeure lasts for a further period,
then for a further period of 15 days Contractor shall be paid at 1/3rd of the Non-
operating rate in excess of first 15 days after which zero rate shall be payable to the
Contractor and ONGC shall have the right to terminate this Agreement by giving 15
days notice unless otherwise mutually agreed.

21.2 WEATHER AND WAITING ON DAY LIGHT.

The parties hereto agree that waiting on weather/waiting on day light

shall not be considered as Force Majeure. Weather in this case means
temporary conditions of wind, waves or tides, which make it unsafe or
hazardous to conduct operations hereunder. The non-operating rate shall be
ONGC/MM/03/(45)
applicable during these conditions.

22.0 TERMINATION

22.1 TERMINATION ON EXPIRY OF THE TERM

This Agreement shall be deemed to have been automatically terminated

on the expiry of the Primary Term unless the Operator has exercised its option
to extend this Agreement in accordance with the provision of this
agreement.

22.2 TERMINATION ON ACCOUNT OF FORCE MAJEURE

(BL/03/38 dated 27.01.2017)

Operator shall have the right to terminate this Agreement on account of
Force Majeure, as set forth in Article 21 herein above.

22.3 TERMINATION DUE TO LOSS OF DRILLING UNIT

Should the Drilling Unit be lost or be missing and presumed lost or if

the Drilling Unit should become a total loss, (constructive arranged or
compromised), this Agreement will be deemed to have been terminated without
notice, in terms of Article 20.0. No payment whatsoever other than amount
previously earned shall be due from the Operator to the Contractor as from
that date.

22.4 TERMINATION ON ACCOUNT OF INSOLVENCY

In the event the Contractor or its collaborator at any time during the term
of this Agreement becomes insolvent or makes a voluntary assignment of its
assets for the benefit of creditors or is adjudged bankrupt, then the Operator
shall, by a notice in Writing have the right to terminate this Agreement and
all the Contractor's rights and privileges hereunder, shall stand terminated
forthwith.

22.5 TERMINATION FOR UNSATISFACTORY PERFORMANCE

If the Operator considers that the performance of the Contractor is

unsatisfactory or, not upto the expected standard, the Operator shall notify the
Contractor in writing and specify in detail the cause of such dissatisfaction. The
Operator shall have the option to terminate this Agreement by giving 30 days
notice in writing to the Contractor, if, Contractor fails to comply with the
requisitions contained in the said written notice issued by the Operator, in
accordance with Articles 3.6 and 3.10.

22.6 DUE TO CHANGE OF OWNERSHIP AND ASSIGNMENT

In case the Contractor's rights and/or obligations under this Agreement

and/or the Contractor's rights, title and interest to the Drilling Unit are transferred
or assigned without the Operator's consent, the Operator may, at its absolute
discretion, terminate this Agreement, as provided in Article 25.1 "Assignment

ONGC/MM/03/(46)
and change of ownership" hereunder.

(BL/03/19 dated 09.07.2010)

22.7 TERMINATION FOR DELAY IN MOBILISATION

If the CONTRACTOR (successful bidder) fails to mobilize and deploy the

Drilling Unit within the stipulated time, Operator shall have, without prejudice to
any other clause of the CONTRACT, the right to terminate the contract.

22.8 CONSEQUENCES OF TERMINATION

22.8.1 In all cases of termination herein set forth, the obligation of the Operator
to pay the day rate and/or any other charges, shall be limited to the period upto
the date of termination. In case of “Termination with Notice”, the Non-operating
Day Rate will be applicable during the notice period i.e. till the contract is
terminated under the provision. Notwithstanding the termination of this
Agreement, the parties shall continue to be bound by the provisions of this
Agreement that reasonably require some action or forbearance after such
termination.

In case of termination of Contract herein set forth, except under 22.1 and 22.2,
22.3, 22.8 and / or annulment of the contract due to non-submission of
Performance Security (as per clause ____of Annexure-I) [Work center to indicate
relevant clause number], following actions shall be taken against the Contractor:

i. Operator shall conduct an inquiry against the Contractor and

consequent to the conclusion of the inquiry, if it is found that the fault is on
the part of the Contractor, then they shall be put on holiday [i.e neither
any tender enquiry will be issued to such a Contractor by Operator
against any type of tender nor their offer will be considered by Operator
against any ongoing tender(s) where contract between Operator and that
particular Contractor (as a bidder) has not been concluded] for a period of
two years from the date the order for putting the Contractor on holiday is
issued. However, the action taken by Operator for putting that Contractor
on holiday shall not have any effect on other ongoing contract(s), if any
with that Contractor which shall continue till expiry of their term(s).

ii. Pending completion of the enquiry process for putting the Contractor
on holiday, Operator shall neither issue any tender enquiry to the
defaulting Contractor nor shall consider their offer in any ongoing tender

22.8.2 Upon termination of this Agreement, Contractor shall return to Operator

all of Operator's equipment which are at that time in Contractor's possession
except in case of loss of Drilling Unit as specified in Article 22.3.

22.9 FOREIGN COLLABORATION:

It is a condition of this Agreement that the Contractor shall have and

continue to have technical collaboration with __________at Exhibit __________
during the period of this Agreement both Primary Term and extensions if any.
ONGC/MM/03/(47)
The obligations of the foreign collaboration on behalf of the Contractor for
purpose of this Agreement shall be as specified in Exhibit......of this Agreement.
The foreign collaborator............within fifteen days of entering into this
Agreement shall confirm their obligations to the Operator.

In the event the Foreign Collaborator does not provide the services or
FCA is terminated or ceases to exist for any reason whatsoever during the
currency of this Agreement, the Operator shall have the right to terminate this
Agreement after giving a notice of 90 days during which period the Contractor
shall either resolve or enter into new FC duly approved by the Govt. of India,
without any liability whatsoever on the part of the Operator.

22.10 SEVERABILITY

Should any provision of this agreement be found to be invalid, illegal or

otherwise not enforceable by any court of law, such finding shall not affect the
remaining provisions hereto and they shall remain binding on the parties hereto.

23.0 INFORMATION - CONFIDENTIAL

All information obtained by Contractor in the conduct of operations

hereunder, including but not limited to depth, formation penetrated, the result
of coring, testing and surveying, shall be considered as confidential and shall
not be divulged by Contractor or its employees to any person, firm or
corporation other than Operator's designated representative, without the written
consent of the Operator.

24.0 PREFERENCE TO LOCAL COMPANIES

Contractor agrees to give priority and preference to locally owned

companies, when hiring Sub contractor, SUBJECT TO price, quality and
delivery being equivalent.

24.1 UTILISATION OF AIR-INDIA SERVICES.

Contractor agrees to give priority and preference to Air India Services,

during its every crew change, subject to non-hampering of their schedules.

25.0 ASSIGNMENT OF AGREEMENT

25.1 ASSIGNMENT BY CONTRACTOR

Contractor agrees not to sublet or assign this agreement or interest or any

part thereof to an Indian Joint Venture Co./ Indian Co. having approved technical
back up without first obtaining the written consent of Operator, which shall not be
unreasonably withheld and at such time that :

I. Adequate arrangements being made by Contractor in terms of expertise

and experienced personnel to ensure due performance of said Agreement.

II. The Government of India has fully approved the joint venture
ONGC/MM/03/(48)
 applications for formation of such joint venture Indian Company or has
approved Technical Collaboration of an Indian Co. and

III. The ownership of the Drilling Unit has been transferred to such Indian
Company or such Indian Co. has acquired the Drilling Unit on lease basis.

However, the assignment shall be on same rates, terms and conditions.

Contractor shall remain fully liable and responsible to Operator for complete
performance of all its obligation envisaged under this Agreement.

25.2 ASSIGNMENT BY OPERATOR

Operator shall have the right, at any time, to assign all or any part of its
rights hereunder, to an affiliated Company or a third party provided that
Operator shall remain fully liable and responsible to Contractor to complete
performance of all its obligations imposed by this Agreement.

(BL/03/30 dated 20.04.2014)

25.3 In case any part of the work is sub-contracted to a Micro or Small
Enterprises as per contract conditions then the contractor shall provide complete
details (i.e. name of the subcontractor, value of sub-contracted work, copy of
valid MSE registration certificate etc) of the sub-contractor to ONGC.

26.0 WRITTEN NOTICES

All notices / correspondence shall be in writing and may be delivered

personally to any Officer or Manager at the addresses specified below, unless
changed by Notice or may be sent by registered mail to said address, postage
prepaid, or may be sent by fax, telegram or cable, charges prepaid confirmed by
copy of such fax, telegram or cable sent by registered mail to said address.
The addresses referred to are :

For Operator

For Contractor----

27 ARBITRATION
(BL/03/37 dated 29.12.2016)
27.1 ARBITRATION (Applicable in case of supply orders/Contracts with
firms, other than Public Sector Enterprises) (Not applicable in cases valuing
less than Rs 5 lakhs)

1. There shall be no arbitration for disputes involving claims upto Rupees 25

lakhs and more than Rs. 100 crores. Disputes involving claims above Rs.
100 crores shall be adjudicated under the Commercial Courts, Commercial
Division and Commercial Appellate Division of High Courts Act, 2015.
2. Arbitration can be invoked by giving Invocation Notice only after expiry of the
60 days’ period as per Dispute Notice stipulated in the para above.

ONGC/MM/03/(49)
3. The party wishing to refer a Dispute to Arbitration shall give notice to the
other party specifying all the points of Disputes with details of the amount or
claim to be referred to arbitration ("Invocation Notice"). If the claim is in
foreign currency, the claimant shall indicate its value in Indian Rupee also.
The closing market rate in an exchange declared by SBI on the date prior to
the date of notice should be adopted for conversion of foreign currency in
Indian Rupees.

4. For a dispute involving claims above Rs 25 lacs and upto Rs 5 crores, in

case other party is Claimant, ONGC will forward a list containing names of
five jurists to the other party for selecting one from the list who will be
appointed as sole arbitrator by ONGC. In case ONGC itself is the Claimant,
it shall appoint the Sole Arbitrator by invoking the Arbitration clause and
inform the Contractor. Such dispute shall be resolved by fast track procedure
specified in Section 29B of the Arbitration and Conciliation Act, 1996.

5. For a dispute involving claims above Rs.5 crores and upto Rs. 100 crore,
the claimant shall appoint an Arbitrator and communicate the same to the
other Party in the Invocation Notice itself along with the copy of disclosure
made by nominated Arbitrator in the form specified in Sixth Schedule of the
Arbitration & Conciliation Act, 1996. For the purpose of Section 21, the
Arbitration Proceeding shall commence only upon date of receipt of
Invocation Notice complete in all respects mentioned above.

The other Party shall then appoint the second Arbitrator within 15 days from
the date of receipt of written notice. The two Arbitrators appointed by the
Parties shall appoint the third Arbitrator, within 30 days, who shall be the
Presiding Arbitrator.

The parties agree that they shall appoint only those persons as arbitrators
who accept the conditions of this arbitration clause. No person shall be
appointed as arbitrator or presiding arbitrator who does not accept the
conditions of this arbitration clause.

6. For the purpose of appointment of Arbitrator(s), claims amount shall be

computed excluding claim for interest, if any.

7. Parties agree that neither party shall be entitled for any pre-reference or
pendente-lite interest, i.e. date of cause of action till date of Award by
Arbitral Tribunal. Parties agree that claim for any such interest shall not be
considered and shall be void. The Arbitrator or Tribunal shall have no right to
award pre-reference or pendent-lite interest in the matter.
8. The fees payable to each Arbitrator shall be as per rules framed by the High
Court in whose territorial jurisdiction as per contract and seat of arbitration is
situated. In case no rules have been framed, the fees prescribed may be as

ONGC/MM/03/(50)
 per Fourth Schedule of the Arbitration and Conciliation Act, 1996. However,
Arbitrator may fix their fees keeping the aforesaid schedule as guiding factor.

9. If after commencement of the Arbitration proceedings, the parties agree to

settle the dispute mutually or refer the dispute to conciliation, the arbitrators
shall put the proceedings in abeyance until such period as requested by the
parties. Where the proceedings are put in abeyance or terminated on
account of mutual settlement of dispute by the parties, the fees payable to
the arbitrators shall be determined as under:
(i) 20%of the fees if the claimant has not submitted statement of claim.
(ii) 40% of the fees if the pleadings are complete.
(i) 60% of the fees if the hearing has commenced.
(ii) 80% of the fees if the hearing is concluded but the award is yet to be
passed.

10. Each party shall be responsible to make arrangements for the travel and
stay etc of the arbitrator appointed by it. Claimant shall also be responsible
for making arrangements for travel / stay arrangements for the Presiding
Arbitrator and the expenses incurred shall be shared equally by the parties.
In case of sole arbitrator, ONGC shall make all necessary arrangements for
his travel/ stay and the expenses incurred shall be shared equally by the
parties.

11. The seat of the arbitration shall be the place from where the LOA / NOA has
been issued. For the sake of convenience, Parties may agree to hold the
proceedings at any other venue. The arbitration shall be conducted in the
English language. Insofar as practicable, the Parties shall continue to
implement the terms of the Contract notwithstanding the initiation of
Arbitration proceedings.

12. Parties agree that neither party may amend or supplement its claim during
the course of arbitral proceedings.

13. The parties may, after invocation of dispute, agree for sharing the cost of
Arbitration equally on 50:50 basis.

14. Subject to the above, the provisions of the Arbitration and Conciliation Act,
1996 as amended and applicable from time to time shall apply to the
arbitration proceedings under this Contract.

ONGC/MM/03/(51)
27.2 Arbitration clause for settlement of commercial disputes between
Public Sector Enterprises inter se and Public Sector Enterprise(s) and
Government Department(s) through Permanent Machinery of Arbitrators
(PMA) in the Department of Public Enterprises.

In the event of any dispute or difference relating to the interpretation and

application of the provisions of the contracts, such dispute or difference shall be
referred by either party for Arbitration to the sole Arbitrator in the Department of
Public Enterprises to be nominated by the Secretary to the Government of India
in-charge of the Department of Public Enterprises. The Arbitration and
Conciliation Act, 1996 shall not be applicable to arbitration under this clause.
The award of the Arbitrator shall be binding upon the parties to the dispute,
provided, however, any party aggrieved by such award may make a further
reference for setting aside or revision of the award to the Law Secretary,
Department of Legal Affairs, Ministry of Law & Justice, Government of India.
Upon such reference the dispute shall be decided by the Law Secretary or the
Special Secretary/Additional Secretary, when so authorized by the Law
Secretary, whose decision shall bind the Parties finally and conclusively. The
Parties to the dispute will share equally the cost of arbitration as intimated by the
Arbitrator.

(BL/03/37 dated 29.12.2016)

27.3 Resolution of disputes through conciliation by OEC (Not applicable in
cases valuing less than Rs 10 lakhs):

Parties hereby agree as under:

If any difference or dispute (hereinafter referred as “Dispute”) under the Contract
arises, the party shall give a 60 days written notice ("Dispute Notice") to the
identified officer of the other party mentioned in the Contract giving details of the
Dispute. The Parties shall use all reasonable endeavours to resolve the Dispute
mutually and amicably. All efforts by either party within these 60 days Dispute
Notice Period shall be kept confidential by both the parties under Section 75 of
the Arbitration and Conciliation Act, 1996. Parties shall not rely upon any views
expressed or suggestions made by the other party, admissions made by the
other party or the fact that the other party had indicated his willingness to enter
into a settlement as evidence in any Forum / arbitration / court proceeding.

If Parties are unable to resolve the Dispute amicably within 60 days of receipt of
the Dispute Notice, then after expiry of the 60 days’ Dispute notice period, the
aggrieved Party can refer the Dispute to conciliation and / or arbitration subject to
terms and conditions contained herein below:

1) Parties further agree that following matters shall not be referred to

conciliation or arbitration:
i) Any claim, difference or dispute relating to, connected with or arising out
of ONGC’s decision to initiate any proceedings for suspension or banning, or
decision to suspend or to ban business dealings with the Bidder / Contractor

ONGC/MM/03/(52)
and/or with any other person involved or connected or dealing with bid / contract
/ bidder / contractor.
ii) Any claim, difference or dispute relating to, connected with or arising out
of ONGC’s decision under the provisions of Integrity Pact executed between
ONGC and the Bidder / Contractor.

2) Conciliation: (Not applicable in cases valuing less than Rs 10 lakhs)

If any dispute, difference, question or disagreement arises between the parties
hereto or their respective representatives or assignees, in connection with
construction, meaning, operation, effect, interpretation of the contract or breach
thereof which parties are unable to settle mutually, the same may first be referred
to conciliation through Outside Expert Committee (“OEC”) to be constituted by
CMD, ONGC as provided hereunder:

Proposal for OEC

1. Conciliation through OEC will be resorted in cases involving disputed amount

upto Rs. 250 crores only. The disputed amount will be calculated by considering
the amount of claim and counter-claim of the parties.

2. Claimant shall give notice for conciliation. In cases where the contractor is
claimant then the notice shall be given to the concerned ONGC office as per the
contract, clearly bringing out the points of dispute and the amount claimed with
documents in support of the claim and the party concerned shall not raise any
new issue thereafter.

Constitution of OEC

3. CMD, ONGC will have the sole discretion to constitute OEC. OEC will be
formed from the panel of experts maintained by ONGC and will normally
comprise of three members, one member from each category i.e. Technical;
Finance/Commercial; and Legal. However, there will be a single member OEC
for disputes involving a claim and counter claim (if any) upto Rs 1 crore, CMD will
have authority to reconstitute an OEC to fill any vacancy or if any OEC member
is not available to attend the OEC Meetings.

4. Upon constitution of the OEC, Chief Legal Services, ONGC will issue the
appointment letters to OEC members and the parties concerned.

5. The OEC members shall give a declaration of independence and impartiality

(as per Appendix 4) to both the parties before the commencement of the OEC
proceedings.

Proceedings before OEC

ONGC/MM/03/(53)
6. The claimant shall submit its statement of claims to OEC members, and to the
parties prescribed in the appointment letter within 30 days of the issue of the
appointment letter (as per Appendix 4).

7. The respondent shall file its reply and counter claim (if any) within 30 days of
the receipt of the statement of claims.

8. Parties may file their rejoinder/additional documents if any in support of their

claim/counter claim within next 15 days. No documents shall be allowed
thereafter, except with the permission of OEC

9. OEC will commence its meetings only after completion of the pleadings.

10. In case of 3 members OEC, 2 members will constitute a valid quorum and the
meeting can take place to proceed in the matter after seeking consent from the
member who is not available. If necessary video conferencing may be arranged.
However, OEC Recommendations will be signed by ail Members. Further, efforts
must be made for unanimous recommendations.

11. The parties shall be represented by their in-house employees/executives. No

party shall bring any advocate or outside consultant/advisor/agent. Ex-officers of
ONGC who have handled the matter in any capacity are not allowed to attend
and present the case before OEC on behalf of Contractor. However, ex-
employees of parties may represent their respective organizations.

12. Solicitation or any attempt to bring influence of any kind on either OEC
Members or ONGC is completely prohibited in conciliation proceedings and
ONGC reserves the absolute right to close the conciliation proceedings at its sole
discretion if it apprehends any kind of such attempt made by the Contractor or its
representatives.

13. Parties agree to rely only upon documentary evidence in support of their
claims and not to bring any oral evidence in the OEC proceedings.

14. OEC will give full opportunity of hearing to the parties before giving its
recommendations.

15. OEC will conclude its proceedings in maximum 10 meetings, and give its
recommendations within 90 days of its first meeting. OEC will give its
recommendations to both the parties recommending possible terms of settlement
CMD, ONGC may extend the time/ number of meetings, in exceptional cases, if
OEC requests for the same with sufficient reasons.

16. OEC members will be paid fees and provided facilities (as detailed under
point 27 of this clause) hereinafter, subject to revision by ONGC from time to time
and subject to Government guidelines on austerity measures, if any.

ONGC/MM/03/(54)
17. Depending upon the location of the OEC members and the parties, the venue
of the OEC meeting shall be either Delhi or Mumbai whichever is most
economical from the point of view of travel and stay etc.

18. Parties shall not claim any interest on claims/counterclaims from the date of
notice invoking conciliation till execution of settlement agreement, if so arrived at.
In case, parties are unable to reach a settlement, no interest shall be claimed by
either party for the period from the date of notice invoking conciliation till the date
of OEC recommendations and 30 days thereafter in any further proceeding.

19. Legally, parties are under no obligation to refer a dispute to conciliation or

continue with conciliation proceedings. Parties are free to terminate the
conciliation proceedings at any stage as provided under the Arbitration and
Conciliation Act, 1996.

Actions after OEC Recommendations

20. The recommendations of OEC are non-binding and the parties may decide to
accept or not to accept the same. Parties are at liberty to accept the OEC
recommendation with any modification they may deem fit.

21. The contractor shall give its response to ONGC within 7 days receiving OEC
Recommendation.

22. If the Recommendations are acceptable to the contractor partly or fully,

ONGC will consider and take a decision on OEC recommendations. Key
executive shall communicate the decision of ONGC to the contractor, If decision
of ONGC is acceptable to the contractor, a settlement agreement under Section
73 of the Arbitration and Conciliation Act, 1996 will be signed within 15 days of
contractor's acceptance and same shall be authenticated by all the OEC
Members.

23. The timelines mentioned in the above guidelines are with an objective to
achieve expeditious conclusion of OEC proceedings, However, it does not mean
that any action beyond the timelines will be invalid. However, the party concerned
will make all efforts to complete the actions within the stipulated time.

24. The parties shall keep confidential all matters relating to the conciliation
proceedings including minutes of OEC meeting and Recommendations of OEC.
Parties shall not rely upon them as evidence in any Forum / arbitration / court
proceeding, whether or not such proceedings relate to the dispute that is the
subject of the conciliation proceedings,
a. views expressed or suggestions made by the other party in respect of a
possible settlement of the dispute
b. admissions made by the other party in the course of the OEC proceedings;
ONGC/MM/03/(55)
c. proposals made by the OEC;
d. the fact that the other party had indicated his willingness to accept a
proposal for settlement made by the OEC.

25. Confidentiality extends also to the settlement agreement, except where its
disclosure is necessary for purposes of implementation and enforcement. This
stipulation will not apply to disclosure made by ONGC to Govt, of India or its
authorities, if required.

26. Subject to terms and conditions contained in the above paras, the provisions
of the Part III of Arbitration and Conciliation Act, 1996 shall be applicable to the
conciliation proceedings and the parties and the OEC members shall be bound
by the same.

27. Fees and facility to the OEC Members

1. OEC members shall be entitled for the following fees and facilities (All the
expenditure incurred in the OEC proceedings shall be shared by the parties
in equal proportion. The parties shall maintain account of expenditure and
present to the other for the purpose of sharing on conclusion of the OEC
proceedings):

SI. Fees/ Facility Entitlement To be paid

No. by
i. Fees Rs. 20,000 per meeting subject to Contractor
maximum of Rs. 2,00,000 for the whole
case. In addition, one OEC member
chosen by OEC shall be paid an
additional amount of Rs. 10,000 towards
secretarial expenses in writing minutes /
OEC Recommendations.
ii Fee for Rs. 10,000 Contractor
attending
meeting
to authenticate
the settlement
agreement
iii Transportation Car as per entitlement or Rs. 2,000 per Contractor
in the city of day
the meeting
iv Venue for ONGC conference rooms/Hotels ONGC
meeting

Facilities to be provided to the out -stationed member

v Travel from Business class air tickets/ first class train Contractor
the city of tickets/ Luxury car/ reimbursement of
residence to actual fare. However, entitlement of air
the city of travel by Business class shall be subject
meeting to austerity measures, if any, ordered by
Govt of India.
vi Transport to Car as per entitlement or Rs. 3,000 Contractor
ONGC/MM/03/(56)
 and fro airport
/ railway
station in the
city of
residence
vii Stay for out 5 Star Hotel ONGC
stationed
members
viii Transport in Car as per entitlement or Rs. 2000 per Contractor
the city of day
meeting

* Annexure C and D of the circular No. 3 of 2015 dated 29.07.2015 of

Director (HR)- Work centre to give suitable Annexure No. for incorporating the
same in contract conditions). However, incorporated as Appendix 4 & 5 of this
Annexure.

28.0 JURISDICTION AND APPLICABLE LAW

28.1 This Agreement including all matter connected with this Agreement,
shall be governed by the laws of India (both substantive and procedural) for the
time being in force and shall be subject to exclusive jurisdiction of the Indian
Courts (the place where the contract is signed in India).

(BL/03/09 dated 07.06.2007)

29.0 INTEGRITY PACT (applicable for tenders above Rs 1 Crores) :

The Integrity pact, duly signed by the authorized official of ONGC and the
Contractor, will form part of this contract / supply order.

30.0 LIABILITY OF THE GOVERNMENT OF INDIA

It is expressly understood and agreed by and between the Contractor and ONGC
(the Indian PSU) that ONGC is entering into this agreement solely on its own
behalf and not on behalf of any other person or entity. In particular, it is
expressly understood and agreed that the Govt. of India is not a party to this
Agreement and has no liabilities, obligations or rights hereunder. It is expressly
understood and agreed that ONGC is an independent legal entity with power and
authority to enter into Contract’s solely in its behalf under the applicable laws of
India and general principles of Contract Law. The Contractor expressly agrees,
acknowledges and understands that ONGC is not an agent, representative or
delegate of the Govt. of India. It is further understood and agreed that the Govt.
of India is not and shall not be liable for any acts, omissions, and commission,
breaches or other wrongs arising out of the Contract. Accordingly, Contractor
hereby expressly waives, releases and forgoes any and all actions or claims,
including cross claims, impleader claims or counter claims against the Govt. of
India arising out of this Contract and covenants not to the Govt. of India as to any
manner, claim, cause of action or thing whatsoever arising of under this Contract.

31.0 EMPLOYMENT BY FIRMS TO OFFICIALS OF ONGC

ONGC/MM/03/(57)
Firms/ companies who have or had business relations with Operator are advised
not to employ serving Operator employees without prior permission. It is also
advised not to employ ex-personnel of Operator within the initial two years period
after their retirement/ resignation/ severance from the service without specific
permission of Operator. Operator may decide not to deal with such firm (s) who
fails to comply with the above advice.

32.0 The Contractor is prohibited to offer any service / benefit of any manner to
any employee of Operator and that the Contractor may suffer summary
termination of Contract / disqualification in case of violation.

32 REGARDING ICE /SAP CONNECTIVITY

Operator has adopted Enterprise wide ICE / SAP connectivity through out the
organization and accordingly all chartered rigs should be integrated and hooked
up to our infrastructure for working on Enterprisewide EPR Programme. Operator
is in the process of hiring a service provider for Ku band VSAT data & voice
connectivity (from Drilling Unit to 11 high office & vice-versa) for new rigs to be
hired. The cost of providing Ku band VSAT facility has to be borne by Contractor
of charter hired rigs and the cost is Rupees 2.73 Lakhs per annum per rig

33 REGARDING INMARSAT, FAX, MINI M TELEPHONE CHARGES

Inmarsat, Fax, Mini M Telephone etc. should be available on board the

Drilling Unit and in case Operator or Operator’s sub-contractor utilises this facility,
the same will be charged to Operator by Contractor, at actuals excluding service
charges. However, for usage of this facility by Operator’s sub-contractor, prior
approval of Operator shall be obtained.

No payment shall be made by Operator to Contractor for usage of this facility by

Contractor and Contractor’s sub-contractors.

33.0 LIMITATION OF LIABILITY

(BL/03/39 dated 24.08.2017)
Notwithstanding any other provisions, except only in cases of willful misconduct
and / or criminal acts,

a) Neither the Contractor nor the Operator (ONGC) shall be liable to

the other, whether in Contract, tort, or otherwise, for any consequential
loss or damage, loss of use, loss of production, or loss of profits or
interest costs, provided however that this exclusion shall not apply to any
obligation of the Contractor to pay Liquidated Damages plus GST
thereon to the Operator and

b) Notwithstanding any provisions incorporated elsewhere in the

Agreement, the aggregate liability of the Contractor in respect of this
Agreement, whether under the Contract, in tort or otherwise, shall not
exceed 50% of the annualized Agreement Price, provided however that
this limitation shall not apply to the cost of repairing or replacing defective

ONGC/MM/03/(58)
 equipment by the Contractor, or to any obligation of the Contractor to
indemnify the Operator with respect to intellectual Property Rights.

c) Operator shall indemnify and keep indemnified Contractor harmless

from and against any and all claims, costs, losses and liabilities in excess
of the aggregate liability amount in terms of clause (b) above.

34.0 SOURCING OF FUELS FROM MRPL

Contractor shall source the fuels like petrol, diesel etc., if required for
carrying out the works/services covered under this contract, from M/s Mangalore
Refinery and Petrochemicals Limited (a subsidiary of ONGC), wherever feasible.

35.0 VERIFICATION OF CHARACTER AND ANTECEDENTS OF

CONTRACTUAL MANPOWER

The Contractor shall submit the following documents to Operator prior to

start of work: -

i. Undertaking from the Contractor that the character and

antecedents of the persons(s) proposed to be deployed by them is / are
impeccable.

ii. Undertaking from the Contractor that they have scrutinized the
previous working of the person(s) proposed to be deployed by them and
there is nothing adverse as regards his / her character and antecedent.

iii. Alongwith the above mentioned undertakings, the Contractor will

provide certified photocopies of Police verification certificates for
inspection by the authorized representative of Operator. The Contractor
has to obtain Police verification report (signed by an officer equivalent to
DSP rank or higher) from the area where the person(s) to be deployed
has / have been residing since the last five years. In case the person
concerned has not resided at a place for five years at a stretch, Police
verification reports should be obtained from that area where the person(s)
has / have stayed earlier.

(BL/03/30 dated 02.07.2014)

35.1 Submission of forged documents:

Bidders should note that ONGC may verify authenticity of all the
documents/certificate/information submitted by the bidder(s) against the
tender. In case at any stage of tendering process or Contract/PO
execution etc., if it is established that bidder has submitted forged
documents/certificates/information towards fulfilment of any of the
tender/contract conditions, ONGC shall immediately reject the bid of such
bidder(s) or cancel/terminate the contract and forfeit EMD/SD submitted
by the bidder.

(BL/03/33 dated 15.04.2015)

35.2. Consideration of representations on post contract issues submitted
ONGC/MM/03/(59)
 by the bidders to Independent External Monitors (IEMs)
(Applicable for all tenders valuing above Rs. 1 Crore where IP is applicable.)

The bidders may raise disputes / complaints, if any, either with the
designated Competent Purchase Authority (CPA) in ONGC or with
concerned Director of ONGC or directly with the IEM c/o Chief Vigilance
Officer, ONGC, Pandit Deen Dayal Upadhyaya Urja Bhawan, 5 Nelson
Mendela Marg, Vasant Kunj, New Delhi - 110070.

However, Bidders should note that IEMs would consider only those
representations on post contract issues wherein there is an alleged
violation of provisions of IP. Hence, bidders should not refer those post
contract issues to IEMs for resolution, for which dispute resolution
mechanism has already been defined in the contract conditions. The post
contract issues pertaining to alleged violation of provisions of IP, if any,
should only be referred to IEMs

36.0 ENTIRE AGREEMENT

36.1 This Agreement supersedes all prior Agreements and commitments,

whether oral or in writing between the parties concerning the subject matter
thereof. The right of either party to require strict performances will not be
affected by any previous waiver or course of dealing. Neither this Agreement
nor any modification will be binding on a party unless signed by an authorised
representative of Contractor and Operator.

36.2 It is not intended that there be any conflict between this Agreement and
the Exhibits thereto, which are a part hereof for all purposes, but the
Agreement shall take precedence in the event of any such conflict.

36.3 Notwithstanding the termination of this Agreement, the parties shall

continue to be bound by the provisions of the Agreement that reasonably
require some action or forbearance after the expiration of the term of this
Agreement.

In witness whereof, the parties hereto have executed this Agreement as of the
day and year first above written.

For and on behalf of For and on behalf of OIL AND NATURAL GAS
CORPORATION LTD.
......................................

(Contractor) (Operator)

WITNESS: WITNESS:
1. 1.

ONGC/MM/03/(60)
2. 2.

ONGC/MM/03/(61)
 Appendix - 1

Proforma of Bank Guarantee towards Performance Security.

PERFORMANCE GUARANTEE

Ref. No. ____________________________ Bank Guarantee No ____________

Dated _______________________

To,

Oil & Natural Gas CORPORATION

_____________________________
_____________________________
India

Dear Sirs,

1. In consideration of Oil & Natural Gas CORPORATION Limited, incorporated

under the Companies Act, 1956, having its Registered Office at Pandit Deen
Dayal Upadhyaya Urja Bhawan, 5 Nelson Mendela Marg, Vasant Kunj, New
Delhi - 110070, India and one of its offices at _____________________
(hereinafter referred to as `ONGC', which expression shall, unless repugnant to
the context or meaning thereof, include all its successors, administrators,
executors and assignees) having entered into a CONTRACT No.
__________________ dated _______________ (hereinafter called 'the
CONTRACT' which expression shall include all the amendments thereto) with
M/s __________________________ having its registered/head office at
______________________(hereinafter referred to as the 'CONTRACTOR')
which expression shall, unless repugnant to the context or meaning thereof
include all its successors, administrators, executors and assignees) and
ONGC having agreed that the CONTRACTOR shall furnish to ONGC a
performance guarantee for Indian Rupees/US$ .............. for the faithful
performance of the entire CONTRACT.

2. We (name of the bank) ______________________________ registered

under the laws of _______ having head/registered office at
__________________________ (hereinafter referred to as "the Bank", which
expression shall, unless repugnant to the context or meaning thereof, include
all its successors, administrators, executors and permitted assignees) do
hereby guarantee and undertake to pay immediately on first demand in writing
any /all moneys to the extent of Indian Rs./US$ (in figures) __________
(Indian Rupees/US Dollars (in words)_____________________________)
without any demur, reservation, contest or protest and/or without any
reference to the CONTRACTOR. Any such demand made by ONGC on the Bank
by serving a written notice shall be conclusive and binding, without any proof, on
the bank as regards the amount due and payable, notwithstanding any dispute(s)
pending before any Court, Tribunal, Arbitrator or any other authority and/or any
other matter or thing whatsoever, as liability under these presents being absolute
and unequivocal. We agree that the guarantee herein contained shall be
irrevocable and shall continue to be enforceable until it is discharged by ONGC in

ONGC/MM/03/(62)
writing. This guarantee shall not be determined, discharged or affected by the
liquidation, winding up, dissolution or insolvency of the CONTRACTOR and shall
remain valid, binding and operative against the bank.

3. The Bank also agrees that ONGC at its option shall be entitled to enforce this
Guarantee against the Bank as a principal debtor, in the first instance, without
proceeding against the CONTRACTOR and notwithstanding any security or other
guarantee that ONGC may have in relation to the CONTRACTOR’s liabilities.

4. The Bank further agrees that ONGC shall have the fullest liberty without our
consent and without affecting in any manner our obligations hereunder to vary
any of the terms and conditions of the said CONTRACT or to extend time of
performance by the said CONTRACTOR(s) from time to time or to postpone for
any time or from time to time exercise of any of the powers vested in ONGC
against the said CONTRACTOR(s) and to forbear or enforce any of the terms
and conditions relating to the said agreement and we shall not be relieved from
our liability by reason of any such variation, or extension being granted to the
said CONTRACTOR(s) or for any forbearance, act or omission on the part of
ONGC or any indulgence by ONGC to the said CONTRACTOR(s) or any such
matter or thing whatsoever which under the law relating to sureties would, but for
this provision, have effect of so relieving us.

5. The Bank further agrees that the Guarantee herein contained shall remain in
full force during the period that is taken for the performance of the CONTRACT
and all dues of ONGC under or by virtue of this CONTRACT have been fully paid
and its claim satisfied or discharged or till ONGC discharges this guarantee in
writing, whichever is earlier.

6. This Guarantee shall not be discharged by any change in our constitution, in

the constitution of ONGC or that of the CONTRACTOR.

7. The Bank confirms that this guarantee has been issued with observance
of appropriate laws of the country of issue.

8. The Bank also agrees that this guarantee shall be governed and
construed in accordance with Indian Laws and subject to the exclusive
jurisdiction of Indian Courts of the place from where the purchase CONTRACT
has been placed.

9. Notwithstanding anything contained herein above, our liability under this

Guarantee is limited to Indian Rs./US$ (in figures) ______________ (Indian
Rupees/US Dollars (in words) ____________________) and our guarantee shall
remain in force until ______________________.(indicate the date of expiry of
bank guarantee)

Any claim under this Guarantee must be received by us before the expiry
of this Bank Guarantee. If no such claim has been received by us by the said
date, the rights of ONGC under this Guarantee will cease. However, if such a
claim has been received by us within the said date, all the rights of ONGC under
this Guarantee shall be valid and shall not cease until we have satisfied that
claim.

ONGC/MM/03/(63)
 In witness whereof, the Bank through its authorised officer has set its
hand and stamp on this ........ day of ........20__ at .....................

WITNESS NO. 1

-------------------------- -------------------------
(Signature) (Signature)
Full name and official Full name, designation and
address (in legible letters) address (in legible letters)
with Bank stamp

Attorney as per power of

Attorney No.............
Dated ....................

WITNESS NO. 2

--------------------------
(Signature)
Full name and official
address (in legible letters)

ONGC/MM/03/(64)
 INSTRUCTIONS FOR FURNISHING PERFORMANCE GUARANTEE

(Circular No. 12/2009 dated 06.03.2009)

1. The Bank Guarantee by Indian Bidders will be given on non-judicial stamp

paper /franking receipt as per stamp duty applicable at the place from where the
CONTRACT has been placed. The non-judicial stamp paper /franking receipt
should be either in name of the issuing bank or the contractor.

2. Foreign parties are requested to execute bank guarantee as par law in their
country.

3. Foreign bidders will give guarantee either in the currency of the offer or US $
(US Dollar) i.e. Indian Rs/US $ have been mentioned only for illustration.
Therefore, in case where bank guarantee is being given in currency other than
'Rupees' or U.S.$, indicate the relevant currency of the offer.

4. The expiry date as mentioned in clause 9 should be arrived at by adding 60

days to the CONTRACT completion date unless otherwise specified in the bidding
documents.

(Circular no. 23/2013 dated 09.09.2013)

5. The bidders will give Bank Guarantee from any of the following categories of
Banks:

(a) Any Scheduled Bank incorporated in India, Bank Guarantee issued by

foreign branches / foreign offices of such Scheduled Banks be counter guaranteed
by the Indian Branch of any Scheduled Bank incorporated in India.
OR
(b) Any Branch of an International Bank situated in India and registered with
Reserve Bank of India as scheduled foreign bank.

OR
(c) Any foreign Bank which is not a Scheduled Bank in India provided the Bank
Guarantee issued by such Bank is counter guaranteed by any Branch situated in
India of any Scheduled Bank incorporated in India.

ONGC/MM/03/(65)
(BL/03/39 dated 24.08.2017)
ANNEXURE –II
(APPENDIX – 2)

(Stamp paper of Rs 200)

INDEMNITY & UNDERTAKING

1. Know all men by these presents that M/s________ hereby hold and bind
myself / our selves, executers, administrative assignees and legal
representatives to Oil and Natural Gas Corporation Ltd. herein after called
“ONGC” for payment of any amount being demanded / demand by
Customs authorities against Contract no _______ dated _____ from ONGC
for the reasons stated hereinafter.

2. The rig ______________ was working in offshore India in PEL / ML blocks

released / renewed after 1.4.99/eligible areas for Petroleum operations
covered under relevant notification indicated in the contract, under a
charter hire Contract No._______________________________________
dated _________________ by and between ONGC and M/s.
_____________________, withpayment of concessional rate of Customs
Duty under the Essentiality Certificate (EC) #
____________________________ dated _________ issued by
Directorate General of Hydrocarbons (“DGH”) against the said Contract.

3. The rig_________ was imported into Indian waters vide Bill of Entry #
_______ dated ______

4. That M/s ___________________ hereby confirms that the spares and

consumable imported against ECs issued by DGH based on the
recommendatory letters of ONGC during the contract period have either
been consumed on the rig ______________ while deployed for operations
in the PEL / ML areas/ eligible areas for Petroleum operations covered
under relevant notification indicated in the contract or have been re-
exported or have been transferred with the approval of DGH to new
Contract awarded vide________________ dated___________and all the
conditions of Notification, under which exemption was availed by
M/s ________________ while importing the spares and consumable have
been complied .

5. That M/s_________________ confirms that, as on date, there is no

demand from the Custom department in respect of the rig
__________________ hired against the Contract No.______________
dated _______

6. M/s _____________ agrees to indemnify and hold ONGC harmless from

any claim of Customs duty, fine or penalty that may become payable or
against all action of Government or any other agency due to any act of
commission or omission solely by M/s___________________ whereby the
ONGC/MM/03/(66)
 provisions of the Customs Act with conditions of the Notification
No.50/2017-customs dated 30th June2017/ relevant notification indicated in
the contract are not complied with under which exemptions were availed by
M/s ____________________while importing and re-exporting of the rig, rig
equipment and spares and consumable etc.

7. M/s_______________ undertake to forthwith make all payments

enumerated in the foregoing paragraph in the event of any action by
customs authorities against ONGC for violation of conditions, solely by M/s.
________________ of Notification No.50/2017-customs dated 30thJune,
2017/ relevant notification indicated in the contract, to the extent of its fault.

8. That I, ___________________ holding Indian Passport No.

______________________ and an employee of
M/s.______________________________, am authorized by
____________________ to sign, deliver and bind
M/s. _________________________________ regarding this indemnity &
undertaking in favour of ONGC. .

(Authorized Signatory)
(Seal)

Witness:
1.______

2.______

ONGC/MM/03/(67)
(BL/03/39 dated 24.08.2017)

Annexure .

Proforma for Irrevocable Bank Guarantee to be submitted by the contractor in lieu of

payment of Customs Duty made by ONGC, on behalf of Contractor, against Service
Contracts/Charter Hire of Rigs

- Deleted -

ONGC/MM/03/(68)
(BL/03/28 dated 16.04.2014)
Appendix -3

FORM NO. 10F

{See sub-rule (1) of rule 21 AB}
Information to be provided under sub-section (5) of section 90 or
Sub-section (5) of section 90A of the Income-tax Act, 1961

I……………………..*son/daughter of Shri……………………………..in the

capacity of …………………………………………… (designation) do provide the
following information relevant to the previous year…………………………..*in
my case/in the case of ……………………………….for the purpose of sub-
section(5) of *section 90/section90A:-

Sl.No. Nature of information : Details#

(i) Status (individual, company, firm etc. of the assessee :

(ii) Permanent Account Number (PAN) of the assessee if :

allotted

(iii) Nationality (in the case of an individual) or Country or :

specified territory of incorporation or registration (in the
case of others)

(iv) Assessee’s tax identification number in the country or :

specified territory of residence and if there is no such
number, then a unique number on the basis of which the
person is identified by the Government of the country or
the specified territory of which the assesse claims to be
a resident

(v) Period for which the residential status as mentioned in :

the certificate referred to in sub-section (4) of section 90
or sub-section (4) of section 90A is applicable

(vi) Address of the assessee in the country or territory :

outside India during the period for which the certificate,
mentioned in (v) above, is applicable

2. I have obtained a certificate referred to in sub-section (4) of section 90 or

sub-section (4) of 90A from the Government of…………………………( name of
country) or specified territory outside India )

Signature………………………………….

ONGC/MM/03/(69)
 Name………………………………………

Address……………………………………

Permanent Account
No………………….

Verification

I………………………………do hereby declare that to the best of my knowledge

and belief what is stated above is correct, complete and is truly stated.

Verified today the …………………….day of…………………………………………...

…………………………………
Signature of the person providing the information

Place…………………………

Notes:
1. *Delete whichever is not applicable
2. # Write N.A. if the relevant information forms part of the certificate referred
to in sub-section (4) of section 90 or subsection (4) of section 90A.

ONGC/MM/03/(70)
(BL/03/34 dated 22.09.2015)
APPENDIX 4
Source: Annexure C (of Circular No. 3 of 2015 dated 29.07.2015 of Director(HR)
Declaration of independence and impartiality by OEC Member
To,

1. ONGC ………….

2. Contractor …………

Subject: Declaration of independence and impartiality by OEC Member in the

dispute between ONGC…………….And………under Contract No…………

I, the undersigned, hereby accept to act as Member of the Expert Committee and
conciliate in the disputes under reference between the parties above named.

I confirm that I am aware of the requirements of law particularly of the Arbitration

and Conciliation Act, 1996, to act as a conciliator. I am able to act as conciliator
and am available to act as Member of the Expert Committee.

I hereby declare that I am independent of each of the parties and have no

ownership interest in any part of the contract under reference or any financial
interest in the said contract. I have no interest in the outcome of the dispute or its
settlement.

I hereby affirm that I shall act with honesty, integrity, diligence, and will remain
independent and impartial while discharging my duties as conciliator/OEC
Member. I will disclose any interest or relationship with the parties or the subject
matter which might compromise in any manner my ability or capacity to remain
impartial and independent in the matter.

The fees and other facilities offered to me and the terms and conditions contained
in the appoint letter and guidelines issued by ONGC are acceptable to me. I will
not demand for enhancement of the same.

(Signature)
Name:
Address:
Phone:
Email:
Date:

ONGC/MM/03/(71)
(BL/03/34 dated 22.09.2015)

APPENDIX 5
Soruce: Annexure D (of Circular No. 3 of 2015 dated 29.07.2015 of Director(HR)

STATEMENT OF CLAIM(S)/COUNTER CLAIM(S)

1. Chronology of the dispute

2. Brief of the contract

3. Brief history of the dispute:

4. Issues:

5. Details of Claim(s)/Counter Claim(s):

SI no Description of Amount (in USD/INR) Relevant contract

claim(s)/Counter Clause
Claim

6. Basis/Ground of claim(s)/counter claim(s) (along with relevant clause of

contract)

Statement of Claims may kindly be restricted to maximum limit of 20 pages.

Relevant documents may be compiled and submitted along with the statement of
claims. The statement of claims is to be submitted to all OEC members, to other
party and to the office of Chief Legal Services, by post as well as mail.

ONGC/MM/03/(72)