Sun focus on ex-Reliance block CB-ONN-2003/1

Vol 23, PW 22 (10 Sep 20) Exploration & Production

Dilip Shanghvi-owned Sun Petrochemicals is focusing on former Reliance-operated CB-ONN-2003/1, the site of eight discoveries, to kick-start a 10-well drilling campaign.

On August 27 (2020), Sun released a tender for a 1000-hp drilling rig and other services with a September 14 (2020) bid deadline. "We want to hire a rig on a call-out basis for three years," confirms a company source.

"The contract may be extended by another year if necessary." Sun's rig tender is part of a larger invitation to bid published in the national press on August 20 (2020) for services across CB-ONN-2003/1 as well as its Hazira, Baola and Modhera fields.

Under the proposed campaign, Sun is planning to drill up to 10 vertical or directional wells to depths of up to 2200 metres TD. Whoever wins must provide a 1000-hp drilling rig and mud engineering services along with drilling and completion fluids, cementing, directional drilling, logging and (optional) perforation services.

Ahmedabad based companies John Energy and Deep Industries are expected to bid, as is Delhi-based Quippo Oil & Gas. "Day rates for a 1000-hp drilling rig range from $12,000-13,000/day these days," says an industry source.

Sun wants the rig to mobilise by early October 2020 but is not sure it can keep to this schedule amid pandemic restrictions. Sun took charge at CB-ONN-2003/1 on June 14 (2018) after paying Rs132.25cr ($18m) to Reliance (70%) and BP (30%) for a 100% stake.