Essar Ship Ports reports its first overseas drilling contract

18 May 2010

Essar Oil fields Services Ltd (EOSL), a wholly owned subsidiary of Essar Shipping Ports & Logistics Ltd (ESPLL), has received a contract for drilling a 4,800 meter offshore well using its semi-submersible rig `Essar Wildcat'.

The contract, valued at approximately $40 million, from Vietsovpetro JV (VSP), an E&P company operating in Vietnam, is the company's first contract outside India, EOSL informed the Bombay Stock Exchange (BSE) in a release today.

Essar Shipping Ports & Logistics Limited, formerly known as Essar Shipping Limited, is engaged in fleet operations and chartering of ships.

The group, through its subsidiary, Essar Logistics Limited (ELL), provides transshipment, lighterage and trucking services to steel mills and oil refineries.

The group, based in India, operates in parts of Asia, the United States and Europe. The group's fleet operations are managed on a worldwide basis.

ESPLL is engaged in the operation of sea transportation with the presence in dry bulk and tanker segment. The company consolidated the ports and terminal businesses during FY08. As of 31 March 2009, ESPLL had investments in dry bulk ports and oil terminals, crude and dry bulk carriers, port-to-plant logistics and interests in oil field services.

The company had onlent Rs375 crore of the Rs700 crore it raised by way of non-convertible debentures last year to its 100 per cent subsidiary Essar Oilfields Services Ltd. (EOSL) for refurbishment of its existing land rigs.