John Energy wins LoA from Oil India for Rajasthan

Vol 18, PW 8 (04 Dec 14) Exploration & Production
     

Hopeful Oil India has turned its attention from relinquished Rajasthan block RJ-ONN-2004/3 to adjacent block RJ-ONN-2004/2 with imminent plans to drill up to three exploration wells.

PETROWATCH learns Oil India issued a LoA to Ahmedabad-based driller John Energy on November 11 for its 1000-hp rig John-14, currently sitting idle at John’s workshop on the Mehsana to Ahmedabad highway in Gujarat. Hired at $13,000/day, Oil India wants John to mobilise the rig within 90 days of the LoA or by February 11 (2015) latest in time to begin a two ‘firm’ and one ‘optional’ well campaign at the 2196-sq km block RJ-ONN-2004/2, won alongside relinquished block RJ-ONN-2004/3 in NELP-VI.

John confirms Oil India has hired John-14 on a ‘firm’ six month contract with an optional six-month extension following its selection in a tender floated on February 17 this year (2014) with a bid deadline of April 9. Oil India has allocated a total $8.49m for the three-well campaign, of which $2.59 is in the ‘to mature’ category.

Oil India committed to drill 12 wells in Phase-I, but drilled only three, preferring to pay a $2.65m penalty for the nine wells it failed to drill. In the current Phase-II campaign Oil India committed one ‘firm’ well to 1300 metres TD but wants to drill an additional two: one ‘firm’ and one ‘optional’, both to 1300 metres TD.