Iraq drilling contract for Shiv Vani

Vol 16, PW 11 (13 Dec 12) People & Policy

Shiv Vani is turning away from the sleepy Indian onland drilling market for excitement, danger and much-needed money on foreign shores.

PETROWATCH learns Italian-operator Eni hired two 2000-HP rigs from the Delhi-based driller in October to drill at the Zubair oilfield near Basra in southern Iraq. Shiv Vani won the joint three-year contract with Schlumberger to help Eni with its planned 200-well drilling programme to increase Zubair production from 195,000 b/d to 1.125m b/d by end-2015.

Shiv Vani will provide the rigs and Schlumberger will deploy the manpower and manage drilling and cementing services, we hear. “Since Saddam Hussein’s death it is easier to work in Iraq,” reports Shiv Vani.

“But it is still risky and there are many security concerns.” Eni is paying $36,000/day for each rig - compare this to day rates of $18,000 to $20,000 in India and it’s easy to see why the Indian driller has elected to go to Iraq, even though the country is still prone to sectarian violence.

Shiv Vani mobilised one rig to Zubair in November; the other is on its way and likely to reach location by end-December. Before Iraq, both rigs were drilling for ONGC, one in Assam, the other near Jabalpur at block VN-ONN-2009/3 in Madhya Pradesh.

Strapped for cash, Shiv Vani is believed to have asked Schlumberger to pay for the rigs shipment to Iraq. Schlumberger agreed, and will recoup the money back from Shiv Vani’s day rate.

Shiv Vani also has three onland rigs in Oman on contract with Saudi Aramco.

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