Home / Companies / News /  MEIL arm Drillmec to set up $200 million oil rigs hub in Telangana

MEIL arm Drillmec to set up $200 million oil rigs hub in Telangana

Drillmec SpA, a global player, is primarily into design, manufacturing and supply of drilling and workover rigs for onshore and offshore applications, apart from a wide range of spare parts for drilling equipment. Photo: ReutersPremium
Drillmec SpA, a global player, is primarily into design, manufacturing and supply of drilling and workover rigs for onshore and offshore applications, apart from a wide range of spare parts for drilling equipment. Photo: Reuters

  • Drillmec said the global hub will include a manufacturing facility for oil rigs and ancillary equipment, a research and development centre, and a centre of excellence to impart training in cutting-edge technology

Mumbai: Global oil and gas rigs firm Drillmec SpA, the Italian arm of Megha Engineering & Infrastructures Ltd (Meil), on Monday signed a memorandum of understanding with the Telangana government to set up a manufacturing hub for $200 million (approximately 1,500 crore) in the outskirts of Hyderabad.

Drillmec said the global hub will include a manufacturing facility for oil rigs and ancillary equipment, a research and development centre, and a centre of excellence to impart training in cutting-edge technology.

"We are interested in future investment in the Hydrogen fuel project in India. The Hyderabad manufacturing hub will focus on rig manufacturing and ancillaries. This facility also sets up the R&D and training centre of excellence," said Simone Trevisani, CEO Drillmec SpA, adding that the company already has three manufacturing facilities in Italy, the US (Houston), and Belarus. "After considering many offers from various countries, we choose Telangana, India, as it has a progressive industrial policy and investor-friendly," he added.

Drillmec SpA, a global player, is primarily into design, manufacturing and supply of drilling and workover rigs for onshore and offshore applications, apart from a wide range of spare parts for drilling equipment. Drillmec has historically delivered close to 600 drilling rigs.

Meil had in last April unveiled India’s first indigenously developed hydraulic rigs for the oil and gas sector where the advanced hydraulic technology helps in drilling oil wells to a depth of up to 6 kilometres from the surface.

The company had also handed over two indigenously made drilling rigs to state-run Oil and Natural Gas Corporation Ltd. These rigs were part of an order worth 6,000 crore for 47 rigs, including 20 workover rigs and 27 land drilling rigs, that MEIL bagged from ONGC in 2019 through a tender process.

MEIL plans to deliver 23 oil rigs by March 2022 to ONGC assets in Assam (Shibsagar, Jorhat), Andhra Pradesh (Rajahmundry), Gujarat (Ahmedabad, Ankleshwar, Mehsana and Cambay), Tripura (Agartala) and Puducherry (Karaikal).

Drillmec SpA and the Telangana government’s industries and commerce department have agreed to float a special purpose vehicle for setting up an equipment manufacturing unit, which could offer employment opportunities for around 2,500 people.

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