KEI-RSOS to drill five wells in Andhra Pradesh

Vol 15, PW 23 (31 May 12) Exploration & Production

Schlumberger, Baker Hughes and Weatherford are competing to win an ‘integrated’ project manager contract for a five-well drilling campaign across three onshore ONGC marginal fields in Andhra Pradesh.

KEI-RSOS Petroleum and Energy, which operates the fields through an ONGC service contract, is talking to contractors who can oversee the five-development well programme across the Mulikipalli, Sirikattapalli and Magatapalli fields. “For better efficiency we will appoint an integrated project management consultant,” KEI-RSOS tells us.

“Our idea is to hire a single experienced contractor to arrange everything from drilling to completion of wells. When ready the contractor will hand over the wells to us to flow gas.

” KEI-RSOS has budgeted around Rs15cr/well (around $3m) but ruled out hiring small consultants like Chennai-based Ajapa Integrated Project Management Consultants which it feels would struggle to arrange the necessary services. “We’ve identified two or three 2000-hp land rigs in the local area to hire,” adds KEI-RSOS.

“We’re acquiring land for drilling and want to spud the first well by September.” KEI-RSOS believes gas production at the fields could increase to 300,000 cm/d, after the proposed drilling programme.

Each well is likely to take up to three month to drill to around 2600 metres TD. KEI-RSOS operates the Mulikipalli, Sirikattapalli, Magatapalli, Medapadu and Chintanapalli marginal gasfields under an ONGC service contract signed in April 2007.

Luckily, KEI-RSOS is not forced to issue tenders to hire rigs or services, unlike other operators working under pre-NELP or NELP contracts, as it cannot claim cost recovery. KEI-RSOS previously drilled and completed three wells at the Mulikipalli, Sirikattapalli and Magatapalli fields but still awaits gas pipeline connectivity from GAIL so it can sell up to 100,000 cm/d.