Essar Oilfields Services secures contract from GAIL to provide drilling services

Essar Oilfields Services India (EOSIL) has secured a contract from state-owned firm Gas Authority of India (GAIL) to drill three firm and two optional wells in the state of Gujarat’s Cambay basin.

The contract is valued at Rs280m ($4.31m) and follows onshore and offshore drilling works agreed by EOSIL with clients such as Oil and Natural Gas (ONGC), Oil India and Mercator Petroleum.

The company expects to start drilling for the GAIL project in April-May this year.

EOSIL CEO Rajeev Nayyer said: “This contract, the fourth that we have signed this fiscal, yet again validates our credentials as a world-class drilling contractor.

“Both public and private sector oil majors have intensified exploration activity in India, and they have reposed faith in us for their drilling needs.”

Nayyer further noted that the company is well positioned to win additional contracts and grow further in the next fiscal.

The projects in the pipeline are expected to enable the company to grow its revenue to Rs4bn ($61.58m) in FY19, which represents an increase of 35% when compared with the current fiscal.

For the GAIL contract, EOSIL will undertake the drilling activity using the Essar Rig MR01 (1000 HP), which is the company’s latest addition to its fleet of rigs.

The MR01 is currently being used to carry out drilling for Mercator Petroleum.

Once the drilling assignment is completed, the rig will be moved to the GAIL project.

Last month, EOSIL was awarded Rs320m ($4.92m) contract to drill 30 wells at the ONGC’s coal bed methane (CBM) block in Bokaro, Jharkhand.

EOSIL’s asset portfolio includes 15 land rigs and the semi-submersible offshore rig, Essar Wildcat, which has the ability to undertake drilling in water depths of up to 1,600ft and drilling depth of up to 25,000ft.