Indian ONGC Signs off CBM Contract

India's state-owned ONGC has issued a letter of award to Greka Drilling for a three-year 73 well drilling contract for its Bokaro coalbed methane asset in India, Greka said June 16.

Greka announced the contract in April this year. It will deploy one of its purpose-built efficient semi-automated GD75 rigs based in India. ONGC plans to drill 73 wells over the next three years using this rig. The company expects to generate total revenues of $15mn over the three-year period.   

“Greka is also in advanced talks with other oil and gas operators to contract our rigs in India during 2017,” said Randeep S. Grewal, CEO of Greka Drilling: “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.”

In March, the Indian government allowed CBM producers to market and price the gas freely in the domestic market. The aim is to boost local production.

Shardul Sharma