MEIL hands over 2nd oil rig to ONGC; to supply 21 more by 2022

New Delhi: Infrastructure company MEIL on Thursday 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.