Essar disappointed with Greka Drilling

Vol 18, PW 17 (23 Apr 15) News in Brief

Essar Oil is unhappy with the performance of UK-listed Greka Drilling which has deployed five rigs at its 500-sq km Raniganj East CBM block RG (E) CBM-2001/1 to drill 100 wells under a $65m one-year contract.

“There have been problems at Raniganj,” says a senior Essar source. “It’s not about land acquisition or anything else.

The problem is with Greka’s rigs. Only three of their five rigs are working.

They must improve their performance.” Essar meanwhile is preparing to re-mobilise three idle Schramm rigs on location to make up for the Greka shortfall.

Yet despite Greka’s poor performance, Essar believes it can raise present production of 550,000 cm/d to the targeted 1.2m cm/d over the next few months. “We’ve drilled and completed 100 wells,” Essar says.

“We’re targeting to drill 200 wells in another year.” Greka’s contract with Essar was announced on December 16, 2013.

Greka was meant to begin drilling from June 2014 but began work only in October 2014.