Statoil to drill 21 deepwater wells in two years for ONGC

Vol 6, PW 13 (28 Aug 02) News in Brief

Statoil of Norway will drill about 21 deepwater exploration wells for ONGC during two years beginning later this year, according to the terms of a three-year 'strategic alliance' signed by both companies in July.

ONGC will pay Statoil according to "a mutually agreed reimbursement basis" during the first two-year period. But for the third year, ONGC will pay it matching international competitive bidding rates.

Statoil is ONGC's preferred contractor to drill wells in water depths of between 1,500 and 2,500 metres. Statoil has rigs that can drill in water depths up to 1,800 metres and with some modification, these rigs drill up to 2,200 metres depth.

ONGC is also looking to Statoil for help in setting up early production systems to exploit its idle marginal fields. It also wants help with enhanced oil recovery techniques and advice on improved health, safety and environment practices.