Faster and hassle free operation.

Deliveries possible even on holidays or late night. Customs in SEZ working
on 24 Hour basis and within the premises.

It is estimated that Indian operators pay close to USD 10 Million as mob &
Demob charges to the contractors for their tools, equipment being brought
from all over the world and sent back to be imported again for other
operator/block/contract. By keeping such equipment/tools in the SEZ most of
the mob–Demob cost can be saved.

Export entire returnable equipment/tools lying in the present warehouses to
the SEZ and get all bonds cancelled for export made into the SEZ and reduce corporate exposure.

The operator has to provide costly space to the contractor to store their back
up tools and insurance spares. With this facility, the contractor can keep such stocks in a pool at SEZ facility and operators can save on costly space in their shore base.

Drilling operations being time sensitive, the tools/equipment will be available ex-stock to the operators from within the country.

Many consumables like Drill Bits are imported by operators on consignment basis. If used, the contractor is paid and balance bits have to be exported back to the vendor. Lot of unwanted inventory and space is build up at operator’s place. With SEZ facility, the vendor can supply the bits as and when
ex-stock from SEZ and operator will not be required to carry vendors’ inventory in their required Shore base.

The vendor can offer such bits kept in SEZ to other operators. Loss of opportunity due to bits not being available to others can be reduced.

The tools need not be sent to other countries for repair and maintenance and these can be repaired in the SEZ facility thus saving down time and cost associated with it.

The operator will not be required to provide Essentiality certificate for spare
parts to the contractor for servicing/repair of the tools. The contractor will be
able to bring in their spares into the SEZ and be accountable for its use.

Lot of space, use of equipments and other resources can be saved by operators which they have to provide free of cost to the contractors/ vendors for keeping their material by making them shift to the SEZ and provide same
kind of service.

In an emergency, many tools, equipment need to be air freighted at exorbitant cost and worries. By asking vendors/contractors and suppliers to keep emergency backup tools and equipments in SEZ such tense moments can be reduced.

As the import and export will happen at one place only, misinterpretation of rules by customs officers will be eliminated as all customs clearance will happen at SEZ gates and in routine manner. The customs staff at SEZ will be well aware of rules and regulations governing Oil and Gas related procedures and notifications. Even if there is change of staff due to transfers, all staff does not get changed in one lot. This will reduce litigation cost.

All local procurements of material into SEZ will be free from Excise duty, Sales and Service Tax, thus saving huge amounts. This will be biggest saving for any operator/company and can be upto 25%-35% of local procurement cost.

No need to Block Transfer any material. It would be imports from SEZ and export to SEZ.

Operators can save on re-stocking cost on surplus chemicals by sourcing as per requirement from the SEZ. No need to have 100 % back up quantity.

Operators can save huge cost on expired chemicals by sourcing required quantity as and when needed from the vendors’ stocks in the SEZ.

If Seismic data processing center is established by any company in SEZ, the operators will get benefit immensely.

No need to ask Ministry of Defence(MoD) or Directorate General
of Hydrocarbon(DGH) for nomination of escorts of data to other countries.

Save huge cost on sending out data regularly to other countries
and arrangements to be made for officials of company, MoD & DGH.

Operators with multiple blocks need not buy materials like casing for multi blocks or for individual blocks then do book transfers or hold excess inventory
in one block and no inventory in other. By sourcing such material from SEZ as
and when required and for particular blocks, inventory management can
be done in more efficient manner.

Essentiality Certificate(EC) will be required only when the material is to be cleared for Operations and not for clearance from the gateway port, thus
avoiding the crucial documentation.

Any wrong documentation by the supplier can be checked in SEZ.

User can check the equipment of contractor for its operational condition. No need to call for all the equipment to the shore base and assemble for its certification.

In case of maintenance/service, the same can be done in SEZ.