PRADEEP NANDRAJOG, J.

1. OIL issued a Notice Inviting Tender on July 19, 1993 to drill and set up four Offshore Oil/Gas Wells, three at Saurashtra Offshore and one at Orissa Offshore. The work had to be executed on turnkey basis i.e. drillship, associated equipment, personnel and services were to be provided by the bidder, called as operator under the NIT. In response, ESSAR submitted its bid on December 06, 1993. There was an exchange of correspondence between the parties. Offer being accepted, OIL issued a letter of intent on February 20, 1995, which was followed by a formal agreement executed by the parties on May 08, 1995. As per the agreement the operations had to be completed within one year. Rates were fixed for payment. The three wells Offshore Saurashtra coast at locations L-2, L-3 and L-4 had to be completed first, followed by drilling at the location at L-1; Offshore Orissa. Depth to which the wells had to be drilled was specified. Number of days required for drilling and testing was recorded. Pertaining to location L-1, drilling days stipulated were 135. Testing d