GAIL wants 1000-hp rig for Cambay

Vol 24, PW 19 (12 Aug 21) News in Brief
       

After an eight-month delay, GAIL has relaunched a tender for a 1000-hp drilling rig for 12 months to drill at its OALP-1 block CB-ONHP-2017/12 in Gujarat.

John Energy, Deep Energy and Shiv Ganga are among the drillers expected to bid in the tender, floated on August 6 with an August 23 (2021) bid deadline. A source tells us GAIL might extend the contract from 12 to 15 months.

"John Energy stands a good chance of winning as it has already worked with GAIL in the Cambay basin," says a source. GAIL originally wanted to begin drilling by July (2021) but now plans to start after the monsoon between October and December (2021).

"In Gujarat, hire rates for a 1000-hp rig average around $13,000/day," we hear. "But for a one or two-well campaign like this, the rates change."

GAIL has committed to drill one well at Golana village in Anand district for an estimated Rs10cr ($1.3m) to 2500 metres TD plus an 'optional' second well. Whoever wins must mobilise within 75 days.

GAIL cancelled an earlier 1000-hp rig tender released on January 19 (2021) after receiving a single bid from Deep Energy. On May 14 (2021), GAIL awarded an Rs1.22cr ($167,000) contract to Delhi-based Enquest PetroSolutions to project manage the drilling campaign.

Measuring 212-sq km, OALP-1 block CB-ONHP-2017/12 straddles the Ahmedabad and Anand districts of Gujarat.