Essar wins another Bokaro CBM drilling contract

Vol 22, PW 4 (29 Nov 18) Exploration & Production
     

Essar Oilfields Services has won another two-year ONGC contract for a rig already deployed at the Bokaro CBM block BK-CBM-2001/1 when UK-listed Greka Drilling failed to mobilise.

This report learns ONGC issued a LoA to Essar on November 16 to hire the MR-11 rig plus mud services and an Effluent Treatment Plant for a two-year campaign to drill 48 wells. "In two years," says an Essar source.

"ONGC wants us to drill 37 vertical and 11 directional wells." Essar has already deployed MR-11 at Bokaro to drill 30 development wells under a contract signed on January 19 (2018) after it came to ONGC's rescue when Greka failed to mobilise for its $15m contract to drill 73 wells at Bokaro, awarded in June 2017.

"Under the LoA for the first contract," adds Essar, "we have to drill 30 wells by February 2019, then our rig will undergo third party inspection and the second contract (awarded on November 16) will begin after that." Competing against Essar for the second contract was Gurgaon-based South West Pinnacle.

Under its first ONGC contract Essar is presently drilling the 17th well. "We have drilled 11 vertical wells, five directional wells and one workover well under the first contract," confirms Essar.

Initially, our source admits, the company was making slow progress with the development wells because of geological challenges and trouble with local villagers demanding money and jobs.