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Essar Oilfields Services (EOSIL) has won a one-year ₹32-crore contract from ONGC to drill 30 wells at the latter’s coal bed methane (CBM) block in Bokaro, Jharkhand.
The company said it would be deploying the MR11 land rig for the job, which is expected to commence in the next few weeks.
The contract brings Essar Oilfields Services closer to posting revenue of ₹300 crore in the current fiscal, now with three land rigs currently in operation, contracted to Oil India and Mercator Petroleum.
Its offshore semi-submersible rig, the Essar Wildcat, is also deployed on a three-year ₹850-crore contract with ONGC since May 2017, the company said.
Rajeev Nayyer, CEO, EOSIL, told BusinessLine that the company expects to increase its revenues by a further 20 per cent in FY 2018-19 with eight of its rigs likely to be in operation in the upcoming financial year.
The company is also bidding for a contract from GAIL and longer term contract with ONGC.
With benchmark Brent crude oil prices touching $70 a barrel, upstream companies are returning to oil exploration, with investments in the discovery of newer blocks and oil extraction becoming more feasible as crude oil prices recover.
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