Greka Drilling Limited, the independent and specialized unconventional oil & gas driller in Asia, has recently been declared the winner, subject to contract, of a three year integrated drilling contract by Oil and Natural Gas Corporation Limited (“ONGC”) for ONGC’s Bokaro CBM asset (the “Contract”) in India.
ONGC, the Indian Government owned company, is the largest Exploration & Production (“E&P”) company in India and is engaged across the E&P and refining businesses. ONGC also has extensive joint-ventures globally. Greka Drilling was among 17 bidders that submitted their bids for the contract including both domestic Indian drilling contractors and global drilling contractors.
The company has been informed by ONGC that it is the winning ‘L1 bidder’ of the Contract. ONGC is now completing its internal procedures before issuing a Letter of Intent (“LoI”) to the company. The LOI, which is supposed to be issued during April 2017, is expected to provide, subject to contract, for the drilling of 73 wells over the next three years. Under the contract, the company will deploy one of its purpose built efficient semi-automated GD75 rigs based in India. The project will entail the provision of drilling and mud services along with the provision of associated equipment and is estimated to generate revenues of a total of US$15 million over the three year period. Following receipt of the LoI, mobilization of the GD75 rig is expected within 90 days.