GAIL opens Rajasthan rig bids
GAIL is reviving its alter ego as an exploration company with plans to begin drilling at OALP-7 onland block RJ-ONHP-2021/1.
In early October 2024, GAIL opened price bids to hire a 1000-hp rig for the drilling programme. Ahmedabad-based John Energy bid the lowest quoting Rs13.92cr ($1.6m); Barmer-based Kiri & Company was far behind, bidding Rs26.62cr ($3.2m).
GAIL issued the tender on July 15 (2024) and wanted bids in by August 7 (2024) but later extended the date to August 24 (2024). GAIL plans to drill two wells at the block to 1000 metres TD from the first quarter (April-June) of 2025-26.
But GAIL has yet to award John the contract. "Even though we bid so low, GAIL finds the price too high," says a John source.
"GAIL was supposed to call us for negotiations, but we haven’t heard from them." Signed on June 28 (2022), the RSC became effective from November 30 (2022) when Rajasthan granted the three-year PEL.
According to the RSC, two exploratory wells must be drilled during the initial exploration phase. GAIL was the sole bidder for the 486.39-sq km block in OALP-7.
According to the DGH brochure, the discovered resource potential is 938m tonnes of oil equivalent (toe), while the undiscovered potential is around 3188m toe. Two wells were previously drilled, and a 210-lkm 2D survey has been carried out.
Block RJ-ONHP-2021/1 lies in the Barmer-Sanchor Basin, in western Rajasthan's Thar desert, between Vedanta's prolific RJ-ON-90/1 block to the south and NELP blocks to the north.