EOSL's investment plan includes acquisition of a diversified fleet of rigs, for onshore and offshore drilling.
Essar want to cash-in on the increase in oil and gas exploration and production activity around the world, including in India. Increased E&P activity has seen rig utilization rates in excess of 98%.
"This demand for the drilling rigs is forecast to sustain over the next 3-5 years. The contract drilling rates have nearly doubled in the last three years and we forecast they will remain robust," according to a statement from Essar.
EOSL, whose operations are run out of its office in Dubai, UAE, will manage Essar's rigs for its own E&P activities as well as contract drilling for third parties.
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