Greka argues with Essar over LiFaBric costs

Vol 19, PW 3 (08 Oct 15) Exploration & Production
     

Greka Drilling is re-locating four of its five high-spec CBM drilling rigs in India to a tax-free zone at Kolkata port amid continued deadlock with Essar Oil over its contract at RG (E)-CBM-2001/1 in West Bengal.

Earlier reports that Greka is repatriating rigs GD75-16, GD75-17, GD75-18 and GD75-20 back to China are incorrect. “As of now the rigs will not be shipped to China,” reports a source.

“Some of Greka’s rigs in China are idle so there’s no point shipping them back until Greka finally says Goodbye to India.” For now that’s unlikely.

Greka is pinning hopes on securing contracts for its idle rigs with either Great Eastern for its 210-sq km Raniganj (South) block, Reliance for its two Sohagpur blocks or ONGC for its 95-sq BK-CBM-2001/1 or Bokaro block. “Greka’s talks with Great Eastern are the most advanced,” adds our source.

“Great Eastern wants two rigs to drill 50 wells.” Greka’s deadlocked talks with Essar centre on deployment of rig GD75-19 that is not with the other four en route to Kolkata and remains stacked at a yard at Durgapur ready to drill a well using its fabled LiFaBric drilling technology.

“Essar is adamant that it will pay only after seeing the results from a LiFaBric well,” we hear. “But Greka says Essar should pay irrespective of the results as there is a cost to the drilling.