Essar Oilfields Services (EOSL) expects to tie up Rs 1,250 crore funding for two jack-up rigs by the end of this month, a senior company official said.
A consortium of Indian banks led by IDBI Bank are understood to be involved in the syndication, said V Ashok, director, Essar Shipping Ports and Logistics (ESPLL), which administers Essar Oilfields Services.
The company is being given the facility at competitive terms. Construction on the two high specification and technologically advanced jack-up rigs is currently under progress at Dahej in Gujarat and is on schedule. The rigs are expected to join EOSL fleet by end-2011.
The Essar Group, with interests ranging from steel and shipping to refining, is sharpening its focus on the offshore oil field services business.
"We have a committed spend of more than $1 billion in the oilfields sector. As we move ahead, we will decide on procuring other assets," Ashok said.
The semi-submersible rig of the company, Essar Wildcat, has successfully completed drilling well KG 19 for Gujarat State Petroleum Corporation (GSPC) ahead of schedule and has now been allotted well KG 20 for drilling.
The contract with GSPC is expected to continue till mid-2010.