Oil India wants 1400-hp rig for Odisha wells

Vol 26, PW 25 (30 Nov 23) Exploration & Production
 

Oil India wants to hire a second rig to speed up its drilling programme in the southern Indian state of Odisha.

On November 21 (2023), Oil India invited offers to hire a 1400-hp AC-VFD rig to drill wells across five OALP-2 and OALP-3 blocks in Odisha's onland Mahanadi basin with a December 21 (2023) deadline for bids. On offer is a one-year contract with an optional six-month extension.

Oil India wants the rig for one 2299.74-sq km OALP-3 block MN-ONHP-2018/5 and four OALP-2 blocks: 2933.85-sq km MN-ONHP-2018/1, 2539.51-sq km MN-ONHP-2018/2, 3138.59-sq km MN-ONHP-2018/3 and 3196.86-sq km MN-ONHP-2018/4. All of the block RSCs were signed on July 16 (2019).

Oil India has drilled two wells at MN-ONHP-2018/2: Puri-1 at location OPUE, spud on February 15 (2023) by Quippo Rig-32, and Puri-2 also drilled by the same rig. Puri-2 has shown promising indications of a gas pocket.

"But we have yet to test the well," says a company source. To conduct testing, Oil India will issue a separate equipment tender.

"Once the testing equipment is hired, we will go ahead with testing the well," our source adds. After completing well Puri-2, the Quippo Rig-32 has begun drilling well Cuttack-1 at location OCUB, near Odisha's Kendrapa district.

Spud on November 13 (2023), Cuttack-1, will be drilled to 1250 metres TD at MN-ONHP-2018/5, north of the Mahanadi river tributary. By November 24 (2023), the rig had reached 310 metres TD.

"At first, the planned TD was 2400 metres, but later, the geological department reduced it to 1250 metres," we hear. "They believe the basement sits at 1250 metres."

Once the rig completes Cuttack-1, Oil India will move it to location OCUD at block MN-ONHP-2018/4, assuming it can overcome land acquisition challenges. "Land acquisition is extremely difficult in Odisha," we hear.

"Before starting the drilling programme, we struggled to acquire land; the state government is helpful, but we are yet to acquire land for all our planned drilling locations." Oil India aims to drill 20 wells across the five blocks but will initially focus on just 10.

"Obviously, we might drill more than ten if we see more hydrocarbon indications," we hear.