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Greka Drilling receives letter of intent for ONGC contract in India

Published: 16:31 16 Jun 2017 AEST

picture of oil drill
Programme will run for three years

Greka Drilling Limited (LON:GDL) has received a letter of award (LOA) for a three year, 73-well drilling programme from India’s Oil & Natural Gas Corporation Limited (ONGC).

State-owned, ONGC is the largest oil and gas exploration and production company in India and will use Greka to explore the Bokaro coal bed methane (CBM) prospect.

Greka was earmarked for the work in April, but with the LOA should start to mobilise within 90 days though it is still subject to a full contract and performance bond.

The AIM-listed group specialises in drilling unconventional assets such as CBM and will use its purpose-built GD75 rig for the ONGC wells.

This drill has a proven track record of drilling in similar geological conditions, said Greka.

Along with the provision of ancillary service, the contract is expected to generate total revenues of US$15mln over the duration.  

Randeep  Grewal, Greka Drilling’s chief executive, said: “Being chosen as a desired partner with one of the world's largest E&P companies is a momentous occasion for Greka.

He added the company was also in advanced talks with other oil and gas operators for drilling work in 2017.

“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.”

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