EOSL acquires rig for $220 million

EOSL, a subsidiary of Essar Shipping and Logistics Ltd Cyprus, announced that it had taken delivery of a semi-submersible rig.

Essar Oilfields Services Limited (EOSL), a subsidiary of Essar Shipping and Logistics Ltd Cyprus, announced on Thursday that it had taken delivery of a semi-submersible rig.

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The acquisition is in line with EOSL's plans to gain a significant presence in the contract drilling sector and costs the company $220 million, according to a company release.

The rig will be christened "Essar Wildcat" (ex "Trans Ocean Wild Cat"). The company took the delivery of the rig in UK.

"Essar Wildcat" is an anchor moored, self-propelled drilling rig suitable for deployment in water depths of 1350 ft and can be upgraded for deeper waters.

The rig has a drilling depth capacity of 25,000 feet. The rig is equipped with top drive, automatic pipe handling systems and rough weather BOP launch system.

With this acquisition, Essar will be among the elite companies that offer high technology deeper water drilling services. EOSL has drawn up plans to invest over $400 million for acquisition of a diversified fleet of on land and off shore drilling rigs.

Essar has considerable experience and an excellent track record in contract drilling services. It was the first Indian company to offer contract drilling services in 1985 both for onshore as well as offshore E&P activity.

Essar Shipping and Logistics Ltd is a part of global conglomerate Essar Global Ltd, which has operations in steel, oil and gas, power, telecom, shipping and construction sectors.

Email Deepak Joshi: djoshi@hindustantimes.com