Essar Shipping bags contracts of $25 million

NEW DELHI: Essar Shipping, part of the Essar Group, has bagged orders of $ 25 million from New Sino Oil Company to drill five wells in Brunei. Essar Oilfield Services India Limited (EOSIL), a wholly owned subsidiary of Essar Shipping will execute the drilling of these wells.

This contract, expected to last initially for about 9 months, includes the option of extending it to drill three additional wells in and around the same area. The extension would bring the total duration of the drilling program to 15 months.

EOSIL won the contract in a global bid. Essar Shipping won another contract from M/S B.G. Shirke who will commence drilling operations in their first exploration venture in India during May 2012.

The two contracts are expected to generate total revenues in the region of about $25 million over a period of about 15 months.

"Essar Shipping has been executing drilling contracts for various international oil and gas majors. The drilling business is contributing significantly to maintain a healthy top line and operating margins for Essar Shipping.

The current trends in the oil & gas industry point to a strong upturn in the oilfield services sector going forward," said A.R. Ramakrishnan - Managing Director, Essar Shipping.

EOSIL provides contract drilling and related services to oil and gas companies worldwide, operating both offshore and onshore.

The company currently owns a fleet of 13 rigs.