Another two rigs for Cairn drilling in Rajasthan
Cairn India is set to deploy two more drilling rigs for its development programme at the Mangala, Bhagyam and Aishwariya fields at Rajasthan block RJ-ON-90/1.
Cairn currently has two rigs at the block: one drilling rig and one workover. It issued LoIs on November 15 hiring two more: one from Ahmedabad-based John Energy; the other from Oman-based Arabian Drilling, each for 10 months.
John will provide a 1000-hp electric rig, under-construction in China, which will be mobilised in six months at Aishwariya. Arabian will provide a 750-hp hydraulic ‘super single’ category rig, built in 2008 in the US.
Arabian’s rig is undergoing routine re-certification in the US and likely to be mobilised within the next two and a half months at Bhagyam, where she will drill shallow wells. A source explains that hydraulically-operated rigs have masts and draw-works that can be telescopically retracted and extended, enabling quicker movement between drilling locations, unlike mechanically-operated rigs which must be dismantled and re-assembled for each move.
Cairn will pay an Effective Day Rate of around $19,000 for each rig and plans to spend $221m to drill 36 oil producers and 15 water injectors over 18 months at Aishwariya to pump out 3000 b/d from June 2013, rising to 10,000 b/d by 2014 and 20,000 b/d by 2017. But if Cairn’s development drilling programme is to last 18 months why hire the new rigs for 10 months Cairn received DGH approval only for a 10-month drilling programme.
“Cairn is talking to the DGH,” we hear, “and might extend the contracts if it gets approval for its full drilling programme.”