Udipta purchases first drilling rig from China
Sivasagar-based Udipta Energy wants to expand its core competence from workover to drilling contracts with a new 1000-hp drilling rig package from China.
Udipta managing director Sanjib Kakaty tells us the rig is expected to land at Haldia Port in Kolkata by July 2024. On January 30 (2024), Kakaty and Tianjin City-based Tianjin DFXK Petroleum Machinery's director of sales, Max Li, signed a rig supply agreement in Dubai.
By April 10 (2024), Udipta engineers had completed rig inspection in Tianjin, paving the way for the rig to be transported to the Indian port. "Including mud pumps, top drive and a rig, the package cost is around Rs65cr ($7.8m)," says Kakaty.
One industry source says Udipta has won such a good deal that the price it has paid for a drilling rig is the same as the price ONGC paid Megha Engineering just for a workover rig. Udipta is further cutting costs by approaching different vendors for different rig components.
DFXK has supplied the main rig with the derrick, but Udipta approached other companies for the top drive, mud pumps and other elements. "I didn't visit China," adds Kakaty.
"I just sent my engineers to get the job done; I only travelled to Dubai to sign the agreement." He informed us that the rig would have the capacity to drill up to 2500 metres with a 5-inch drill pipe or more if Udipta used a 4.5-inch drill pipe.
Kakaty feels confident he took a calculated risk by investing in a mobile drilling rig considering the changing E&P scenario. "Many small companies are entering the E&P business through small and marginal blocks across India," he continues.
"And that means more opportunities for an experienced player like us." Given the capacity, the rig can be used in Gujarat, Rajasthan, Tripura, or other places in southern or eastern India, where TDs are typically lower than in Assam or Mizoram.
Kakaty was cagey about Udipta's potential first contract with the rig, but he hinted it might be somewhere in western India. According to an industry source, mobile rigs can command more than $15,000/day.