Seros 3000-hp rig to drill Oil India ERD wells
After four failed attempts, Oil India has hired a 3000-hp rig from Surat-based Seros Energy to drill seven Extended Reach Drilling (ERD) wells in Assam.
On June 12 (2024), Oil India issued a LoA to Seros for what will be the only new 3000-hp rig in India. "Oil India decided to award the contract to Seros in early June but finalised the LoA during a board meeting in the second week of June," says a source.
"The four-year contract is worth over Rs900cr ($108m)." Oil India disqualified a technical bid from Egyptian contractor ADES, the only other bidder.
A Seros source says US-based NOV has manufactured major parts for the top-drive rig and tied up with several other US companies to procure parts and establish technical partnerships. "Technically, we are all sorted out," says Seros chief executive Ashish Agarwal, exuding confidence.
Seros, an integrated oilfield operations company, operates 15 drilling rigs, including 2000-hp, 1400-hp, 1000-hp and 750-hp onland rigs. A senior Oil India source says it will use the 3000-hp rig to drill horizontal ERD wells up to at least 2-km from the drill site at the 64.5-sq km Baghjan PML.
"We want work to start in January (2025)," says Oil India. Seros must mobilise the rig within six months from the US to Assam.
Many of the rig package parts have already arrived in India, and the rest will be landing over the next 60 days, either in Mumbai on the west coast or at Haldia on the east coast. "At Haldia there might be challenges because of the draft (depth of the port)," we learn.
"The equipment is heavy and will come in on special ships; there are no such challenges at Mumbai." If the parts land in Mumbai, the main challenge will be transporting the rig nearly 3000-km to Assam.
"Our team is currently discussing all this," adds Agarwal. Nobody responded by Oil India's last deadline on October 31 (2023) in its last attempt to hire a 3000-hp rig.