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.

Essar is using drillbits designed by Texas-based manufacturer Exigent, which specialises in providing bespoke drillbits for different formations. This, adds our source, helped the company drill deeper and save 40% time. "For directional wells we are paid on a per day basis while vertical wells are paid per metre drilled," we hear. "The more metres we drill, the more we get paid." Instead of buying the drillbits, Essar is hiring them from Exigent and is paying for them based on performance. Essar is also using a Measurement while Drilling (MWD) tool from US-based NOV called True Vertical system to increase efficiency. NOV confirms the tool, which incorporates measurement tools into the drill string to help steering, is being used in India for the first time by Essar. Gas production is yet to begin from the Bokaro CBM block which was under the supervision of NC Pandey until he took charge as ONGC director technology and field services on October 29.

Essar wins another Bokaro CBM drilling contract

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