Greka Drilling wins integrated drilling contract from ONGC

Unconventional oil and gas driller Greka Drilling has won a three-year integrated drilling contract by Oil and Natural Gas Corporation (ONGC) for Bokaro CBM asset in India.

Greka Drilling was among the 17 bidders that submitted their applications for this contract.

The company was informed by ONGC that it received the ‘L1 bidder’ of the contract.

Greka Drilling chairman and CEO Randeep S. Grewal said: “While the company has already demonstrated its expertise in India for its existing client, Essar Oil Limited, the winning of the ONGC tender against 16 other well established drilling contractors is a confirmation of Greka Drilling’s mastery within the coal bed methane ('CBM') niche.

“As a global leader with over 20 years of experience in CBM drilling, we look forward to continuing our track record in supporting ONGC in its development of the Bokaro asset.

“Greka Drilling is also in advanced talks with other oil and gas operators in India to mobilise additional rigs in the country during 2017.

“The Indian Government’s progressive plan to develop domestic CBM gas resources was demonstrated in March this year when it approved market pricing freedom for all CBM produced and sold in India.

“This very long awaited policy has been a catalyst to the robust reaction from operators, which are aggressively moving forward with their previously shelved drilling plans.

“In view of this CBM gas pricing reform, we are bullish on the prospect of increasingly providing our specialised drilling services within the niche CBM sector in India.”

ONGC will issue a letter of intent (LOI) to the Greka Drilling after completing its internal procedures, which is expected to be issued within this month.

The contract will require Greka to drill 73 wells over the next three years and deploy its purpose-built, efficient semi-automated GD75 rigs based in India for this contract.

This project includes drilling and mud services in addition to the provision of associated equipment.

The three-year contract is expected to generate revenues of approximately $15m.

Upon receipt of the LOI, mobilisation of the GD75 rig is expected within 90 days.