Quipo in oil drilling deal with Russian firm

Indian Infrastructure Equipment Ltd (IIEL) and Oil Technologies Overseas (OTO), Moscow, have signed a memorandum of understanding (MoU) to develop projects jointly in drilling and related services for the Russian and Indian oil and gas sector. Currently, they are focusing on Russian opportunities.

This marks the entry of Quipo Oil & Gas, a domestic firm, in oil drilling services in Russia. Quipo, a brand of Indian Infrastructure Equipment Ltd (IIEL), envisages an immediate need of 5 modern drilling rigs for the joint venture and has begun the process of acquiring them.

The partnership between these two companies symbolises the long-standing relationships between both the countries, especially in the energy sector.

Promoted by Srei Infrastructure Finance (Srei), Quipo is the only domestic infrastructure equipment rental company having a spread all over the country.

Quipo is backed by investors such as IFC, Washington (a World Bank arm), FMO, Netherlands (financial institution owned by the Government of Netherlands) and Swedfund International AB (a financial institution owned by the Swedish government).

OTO is one of Russia's leading oil & gas services company with 30 years of experience in enhanced oil recovery, reservoir water management, production enhancement, well services including solvent solutions and side track/ directional drilling.

Sunil Kanoria, chairman & managing director, Quipo, said, "It will be our endeavor to build a successful drilling and services business along with our partners OTO. The Russian market offers huge opportunities and we will strive to complement our strengths."

Speaking on the occasion, Vyacheslav Manyrin, chairman, OTO, said, "It is our belief that this unique and pioneering partnership will be successful."