Essar Shipping to invest $400 mln for rig fleet acquisitions

New Delhi, Dec 18 (UNI) Essar Shipping and Logistics Ltd (ESL), today said it will invest 400 million dollars for acquiring onshore and offshore oil drilling rigs.

The Cyprus-registered firm has formed a wholly-owned subsidiary, Essar Oilfields Services Ltd (EOSL) to focus on international and Indian onshore and offshore oil and gas drilling businesses.

EOSL's investment plan includes acquisition of a diversified fleet of rigs, for in land as well as offshore drilling rigs.

''Essar considers that its investment plan in the rigs is opportune as the exploration and production (E&P) activity for crude oil and gas around the world including in India has seen rig utilisation rates in excess of 98 per cent,'' the company said in a statement.

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 are forecast to remain robust, it added.

EOSL whose operations are run out of its office in Dubai, the UAE, will employ the rigs for Essar's E&P activity as well as contract drilling for third parties.

ESL is a leading sea transportation shipping and logistics company with significant expertise in crude oil transportation management services, sea transportation and supply chain management services to industries such as steel, cement, petroleum, fertiliser and power.

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