Essar Oilfields Services (India) Ltd (EOSIL) has announced that it has commenced a contract awarded by Mercator Petroleum to drill two firm oil wells and one optional oil well in the Cambay Basin, Gujarat.

With the company commencing a few other drilling contracts, EOSIL is expecting to clock revenues of $48 million in this fiscal, said Rajeev Nayyer, CEO, EOSIL.

He said this contract bears testimony to Essar’s 25-year expertise in the contract drilling business. “Along with the other drilling contracts that we have commenced this fiscal, the Mercator contract will add substantially to our top-line growth.”

Essar Rig MR01 (1000 HP), the latest addition to the EOSIL fleet of rigs, has started drilling the first well for Mercator. A trailer-mounted mechanical rig capable of drilling up to 11,000 ft, it has been utilised during its six exploratory well contracts with Bharat Petro Resources Ltd, which were part of its previous assignment.

In addition to its 15 land rigs, EOSIL also operates the offshore rig, Essar Wildcat, which is a semi-submersible rig capable of drilling in water depths of up to 1,600 feet and drilling depth of up to 25,000 feet.

Since May 2017, this rig has been deployed on a three-year contract with ONGC on the east coast of India. After completing its work programme in the first location, it is currently at ONGC’s second location and is drilling a deeper exploratory well.