Essar Shipping, part of the Ruias-controlled Essar Group, has bagged an order from New Sino Oil Company to drill five wells in Brunei.

Essar Oilfield Services India Ltd (EOSIL), a wholly owned subsidiary of Essar Shipping, will execute the drilling of these wells.

Extension likely

It will deploy its deep drilling land rig LR4 from August. This contract, which is expected to last initially for about 9 months, includes the option of extending it to drill three additional wells in and around the same area. The extension would bring the total duration of the drilling programme to 15 months.

The rig is currently undergoing refurbishment in West Asia and will be shipped to Brunei shortly to undertake the contract, a company official said.

Essar Shipping won another contract for its rig LR3 from B.G. Shirke Ltd, which will commence drilling operations in its first exploration venture in India from May. The two contracts are expected to generate total revenues of $25 million over a period of about 15 months.

Contribution to topline

Mr A.R. Ramakrishnan, Managing Director of Essar Shipping, said, “We have been executing drilling contracts in South East Asia. The drilling business is contributing significantly to the company's topline and operating margins. The current trends in the oil and gas industry point to a strong upturn in the oilfield services sector going forward.”

EOSIL provides contract drilling and related services to oil and gas companies worldwide, operating both in offshore and onshore sectors. The company currently owns a fleet of 13 rigs, which includes one semi-submersible and 12 onshore rigs.

amitmitra@thehindu.co.in

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