Greka Drilling picked by Indian state explorer for Bokaro project
Greka Drilling Ltd (DI)
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16:29 29/10/18
Asia-focussed specialised unconventional oil and gas driller Greka Drilling announced on Friday that, further to its announcement on 6 April, it was awarded a Letter of Award (LOA) for a three-year drilling contract by Oil & Natural Gas Corporation (ONGC) for that company’s Bokaro CBM asset in India.
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The AIM-traded firm said ONGC - an Indian government-owned company - is the largest exploration & production company in that country, and was engaged across the E&P and refining businesses.
It also had “extensive” joint ventures globally, the board said.
Under the contract, the company would deploy one of its purpose-built efficient semi-automated GD75 rigs based in India.
ONGC planned to drill 73 wells over the next three years using the rig, which had a proven track record of drilling in similar geological conditions according to the company.
The project would entail the provision of drilling and mud services along with the provision of associated equipment, and was estimated to generate total revenues of $15m over the three year period.
Greka said the LOA was subject to contract, as well as the issue of a performance bond.
“I am pleased to announce that Greka Drilling has been awarded an LOA for this three year contract by ONGC,” said Greka chairman and CEO Randeep Grewal.
“Being chosen as a desired partner with one of the world's largest E&P companies is a momentous occasion for Greka.
“As a market leader with 20 years of experience in coal bed methane drilling we are looking forward to supporting ONGC's development plan for its Bokaro asset.”
Grewal said Grewal was also in advanced talks with other oil and gas operators to contract its rigs in India during 2017.
“This coincides with recently announced CBM gas pricing reform by the Indian government and we remain bullish about the prospect of increasing our provision of specialized drilling services within the niche CBM sector in India.
“The company has succeeded in executing a balanced business plan in two of the largest CBM markets - China and India.”
After the award of the ONGC contract, Greka would be associated with state-owned companies in both China and India, as well as with the largest domestic CBM developers - Green Dragon Gas and Essar, Grewal added.
“This contract reaffirms our strategy of diversification both on a client base and geography and gives the company a well-balanced business plan for the long-term.”