Oil India rehires Essar rig to complete KG wells

Vol 22, PW 11 (21 Mar 19) Exploration & Production

Oil India has re-hired Essar's 2000-hp rig LR-3 for at least another six months to test and complete wells at its prospective KG onland block KG-ONN-2004/1.

"We signed the contract in the last week of February," confirms an Oil India source. "Its total value is Rs15.7cr ($2.3m)."

A team from OGD Services, formerly Essar Oilfields Services, is expected to visit Oil India's Kakinada project office this week to discuss the drilling schedule in detail. At present the rig is mobilised to test exploration well GDK-1, spud on October 22, 2017, drilled to 4758 metres TD and completed in April 2018 using a 3000-hp Nabors rig.

Oil India plans to test one zone at this well in the Gollapalli formation and to carry out hydro-fracturing after testing. Oil India's previous two-year contract for rig LR-3 ended in May 2018 but the rig was released on March 4 (2019) because it had yet to complete testing exploration wells YLK-1 and GDK-1 as well as appraisal well DNG-A1.

Oil India planned to test these wells by the end of 2018 but difficult formations and HP/HT conditions made this impossible. Oil India invited EoIs to replace or re-hire the rig by September 28 (2018) and issued a limited tender to Essar on October 31 (2018) receiving its bid on November 30.

"LR-3 was already at the block," adds our source, "so it makes sense to hire the same rig again."