Infrastructure company MEIL said it has delivered the second oil rig to ONGC, and another 21 rigs will be supplied to the state-owned firm by 2022.
The delivery is a part of the Rs 6,000 crore order Megha Engineering and Infrastructures Ltd (MEIL) had won from ONGC for the supply of 47 rigs. MIEL is the first private company in India to manufacture oil and gas extraction rigs with indigenous technology, a company statement said.
An oil rig is a structure with equipment for drilling an oil well.
Outfitted with advanced hydraulic technology, the second rig is set to begin operations at an oil well near GGS-IV oil field near Kalol in Gujarat, under ONGC Ahmedabad Asset. By March 2022, 23 rigs will be delivered to ONGC. The aim is to hand over all the 47 rigs at the earliest, the company said.
"MEIL is also planning to expand its overall business to up to USD 2 billion in coming days by manufacturing indigenous rigs. MEIL will manufacture and supply it in India and globally," it said without divulging any further information.
The oil rigs manufactured by MEIL with advanced hydraulic technology dig oil wells faster and operates with minimal power. With a capacity of 1,500 HP, the rig can easily drill up to 4,000 metres. The rig is expected to be operational for 40 years and comes with the most modern technology, even in terms of security standards.
P Rajesh Reddy, Vice-President, MEIL, said India is importing 80 per cent oil products. Reducing dependence on energy imports is a must for the success of Make in India and Atmanirbhar Bharat. MEIL is proud to be contributing to both the initiatives and playing its part in boosting domestic oil production and securing the country’s energy future.
The indigenous component level in the advanced rigs is 50 per cent at present, and will be increased to 90 per cent over time, he added.
"Until recently, India was mostly dependent on oil and fuel extraction rig imports, but MEIL has significantly boosted domestic rig manufacturing capacity. The second rig handed over to ONGC is manufactured with state-of-the-art hydraulic and automated technology. ONGC will benefit from these advanced rigs built with cutting-edge technology," N Krishna Kumar, Head-Oil Rigs Division, MEIL said.
MEIL will manufacture and deliver the rigs to ONGC Assets in Assam (Shib Sagar, Jorhat), Andhra Pradesh (Rajahmundry), Gujarat (Ahmedabad, Ankleshwar, Mehsana and Cambay), Tripura (Agartala) and Tamil Nadu (Karaikal).
ONGC's order of 47 rigs comprises 20 workover rigs and 27 land drilling rigs. The 20 workover rigs include 12 with a capacity of 50 MT, four of 100 MT capacity, and another four with 150 MT capacity.MEIL further said the rigs can operate at -65 degrees also. These rigs are completely automated and have high efficiency and performance. These rigs are very flexible in transportation and can be moved to any location easily.