ONGC wants Cambay/Ahmedabad rigs

Vol 24, PW 18 (29 Jul 21) News in Brief

ONGC's producing Cambay and Ahmedabad assets in Gujarat will soon see more rigs to help stem declining production.

With only one drilling rig now, the Cambay asset invited offers on July 10 (2021) for a 1000-hp drilling rig with an August 2 (2021) bid deadline. John Energy, Deep Industries, and Quippo are the most likely bidders for the one-year contract.

"Average rates for a 1000-hp rig these days are around $12-13,000/day," says a source. Still unclear is if the rig will drill exploration or development wells.

But every year the Cambay asset drills no more than six exploration wells but up to 20 development wells, we hear. Set-up in 2016, the Cambay asset produces around 4100 b/d and 29,300 cm/d gas from 11 fields.

On July 19 (2021), ONGC's larger Ahmedabad asset invited offers for a 50-tonne workover rig to add to the fleet of five company-owned workover rigs and eight on hire. Expected to bid for the three-year contract by the August 4 (2021) deadline are John Energy, Deep Energy, GTC Oilfield, Western OilField Services, Aakash Exploration, MACO Corporation, Rasson Energy and Kingston Oilfield Services.

"These days, rates for workover rigs range from Rs1.3 lakhs ($1745)- Rs1.5 lakh ($2014)/day," adds an industry source. On December 25 (2020), the Ahmedabad asset registered 4355 tonnes/day or 31,900 b/d production - up from an average of 4100 t/d or 30,000 b/d.