John buys rigs

Vol 14, PW 25 (16 Jun 11) News in Brief

Ahmedabad-based John Energy has bought four onland drilling rigs from competitor Dewanchand Ramsaran.

PETROWATCH learns John signed a deal on May 28 to buy two 1000-hp rigs and two 2000-hp rigs from Dewanchand, which has been forced to sell these rigs to repay debts of up to Rs350cr ($76m) owed to ICICI Bank and IL&FS. “John has bought Dewanchand rigs number 8, 9, 10 and 11,” confirms an industry source.

“Its priority is to get these rigs operational soon.” When contacted by this report in early May, Dewanchand Ramsaran owner Gopal Shorilal denied plans to sell up to six rigs to repay outstanding debts.

Still unclear is how much John paid to Dewanchand, but its rig fleet has increased from 25 rigs to 29 rigs in total. One of Dewanchand’s former 2000-hp rigs is on contract to ONGC in Himachal Pradesh; the other is in Indonesia.

Of the 1000-hp rigs, one is drilling for Selan Exploration and the other is with GAIL and GSPC at RJ-ONN-2004/1 in Rajasthan.