The Hindu Business Line : Essar’s delay in rig deployment hits GSPC’s exploration plan

Kolkata/Ahmedabad, Jan. 22 Delay on the part of Essar Oilfield Services in deploying the Essar Wildcat semi-submersible rig has affected GSPC’s plan to explore the deepwater eastern part of the K-G Basin block (KG-OSN-2001/3).

GSPC expects the eastern part, with an average water depth of 100 metres, to be more hydrocarbon-rich compared to the shallow water southern part of the acreage where it had already struck gas. The company had awarded the $250-million contract to Essar Oilfield in early 2007 to commence drilling in this region.

According to GSPC, as per the original schedule, Essar was slated to mobilise the rig, ready for drilling, in June 2007. Since then the company had skipped at least three deadlines in November, December and January this year. The company, it is learnt, has now promised to deliver the rig ready for commencement of operations in February, eight months behind schedule.

“The delay in availability of Essar Wildcat has already impacted our drilling schedule in the deep waters of the K-G block. We expect the rig to be finally available in February, failing which we may need to enter into some serious discussions with Essar,” a GSPC official told Business Line.

According to sources, though Essar Wildcat had reached the drilling site more or less in time the rig is yet to be fully equipped to undertake drilling activity.

On whether GSPC would go to the extent of terminating the contract with Essar in case of further delay in rig deployment, the official said, “We have kept our tender open and may explore the replacement options if the need arises.”

When contacted, an Essar official confirmed that the rig would be ready for drilling latest by February. “Essar Wildcat is in the final stages of reactivation and upgradation. We are confident that she will commence operations in February,” the official said.

Essar acquired the offshore rig from the world’s largest operator Transocean in early 2007. The rig can negotiate water depths of 400 metres and drill up to 7,500 metres.

Apart from Essar Wildcat, GSPC has already pressed three more rigs — Perro Negro 3, Atwood Beacon and Deep Driller — into action at the K-G block.

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