Essar will soon have 13 rigs working at Raniganj

Vol 17, PW 22 (19 Jun 14) Exploration & Production

Essar has set a firm September 1 deadline for UK-listed Greka Drilling to begin drilling the first of 100 new CBM wells at RG (E)-CBM-2001/1 block in West Bengal.

Greka tells PETROWATCH five of its GD75 rigs are on their way by sea from China to Kolkata port where they are expected shortly. “The monsoon in West Bengal will most likely be delayed,” says a Greka source on June 17, confident the company can meet the Essar deadline.

“This is good news for us; it means we can mobilise before the rains.” On arrival Greka’s five rigs will join eight workover rigs already or expected on location at Raniganj: three from Ahmedabad-based Rasson Energy; three from Aakash Exploration, also Ahmedabad-based; and two from Mumbai-based Kingston Oilfield.

Rasson workover rig REIPL-02 is already on location since last year (2013) and on May 2 this year Rasson received a LoA from Essar for 180-hp rig REIPL-04, a special ‘flush/workover’ rig, hired at Rs50,000/day ($830) for flushing and Rs80,000/day ($1300) for workover; and 250-hp rig REIPL-06, hired at Rs90,000/day ($1500). This follows an Essar tender for three workover rigs on January 30 for a two-year contract.

No award has yet been made for the third rig. Rasson tells us rig REIPL-04 reached Raniganj on June 13 after leaving Ahmedabad on May 29 and rig REIPL-06 will reach location in August.