Greka Bags Two New China Contracts

Asian specialist coalbed methane drilling contractor Greka Drilling two new contracts in China worth $9.1mn, it said October 24.

The first contract is a turnkey contract with Greka Guizhou E&P and the other is a contract with Bohai Drilling Engineering Company, a subsidiary of state owned China National Petroleum Corporation(CNPC).

The $4.9mn turnkey Greka Guizhou contract consists of site preparation, supply of all tangibles, services and drilling needed to complete 12 wells. The program consists of two multi-well pads with one vertical and five directional wells to be drilled on each pad to an average depth of 850 metres. Two of the company’s GS130 rigs have been mobilised to commence the drilling of the 12 wells, which are expected to be completed by year end, Greka said.

Under the $4.2mn second contract, Greka will be a subcontractor to Bohai which is the newly-appointed principal drilling contractor for all horizontal wells for Bohai's parent company CNPC. Bohai has contracted Greka’s CBM purpose built GD75 rigs to complete horizontal wells over two years.

“With the current contracts in hand we expect to be utilising seven rigs by year end in China. The signing of the strategic contract with Bohai is a significant event which is expected to evolve into a long-term relationship between the two companies and create many opportunities for Greka Drilling as state-owned companies continue to ramp up their CBM drilling projects,” said Randeep Grewal, Greka Drilling's chairman.

In addition to the two new contracts, Greka has three contracts with CNPC.

Shardul Sharma