Four rigs wanted for Sohagpur drilling, Reliance

Vol 17, PW 12 (30 Jan 14) Exploration & Production

Expect tenders from Reliance by June this year to hire four CBM drilling rigs to drill another 229 production wells over the next two years at its Sohagpur East and Sohagpur West blocks in Madhya Pradesh.

Reliance also wants to buy two rigs, says an industry source. Reliance told investors on January 17 after quarterly results that its decision to pursue an aggressive Phase-I drilling programme at Sohagpur stems from the expectation that CBM gas prices will rise from April 1 in line with a proposed new domestic gas pricing regime.

Around 70 wells have already been completed at Sohagpur, according to a Reliance source. Reliance hired a 750-hp rig from Gurgaon-based South West Pinnacle last October to drill another 50 wells and plans also to convert some coreholes to production wells.

Land for new drill sites and two gas gathering stations will be difficult to acquire, says Reliance. “The biggest challenge is to persuade local people,” we hear.

“So we'll tread softly and avoid mobilising rigs, equipment and machinery at the same time.” Reliance can drill a well to 800 metres depth in 15 days and needs another 15 days for ‘frakking’, de-water and completion.

"The idea is to begin commercial gas production in the next two years,” we hear. Reliance will also issue tenders to buy casing and tubing and to hire logging, cementing and ‘frakking’ services and pumps to dewater wells.