Mercator first forayed into the Oil & Gas business in 2004, when it chartered a Floating Storage and Offloading (FSO) Unit to BG Group. Since then, the oil & gas division has seen a steady growth with the most recent achievement being the Sagar Samrat Conversion Project for ONGC. With a portfolio of projects including two Oil & Gas blocks in India, Floating Storage and Offloading (FSO) Units and a Mobile Offshore Production Unit (MOPU) in Nigeria, the Oil & Gas vertical has proved itself as a strategic component of Mercator’s philosophy of diversified growth.
Company placed the order for a Jack Up Rig in November 2007 with Keppel FELLS Ltd which was delivered in 2009 & was immediately contracted to one of private sector shipping company in India. The Group has opted out of the Offshore Drilling segment wef March 2011 as strategic decision.
1) Oil & Gas Blocks
In December 2008, Mercator signed Production Sharing Contracts with the Government of India for exploration of Petroleum in two blocks under the Seventh New Exploration Licensing Policy round (NELP-VII). Mercator is the operator of these blocks. The “S-Type” blocks are situated onshore in the prolific Cambay Basin, Gujarat, India.
Block CB-ONN-2005/3 (CB-3) is located in the Mehsana-Ahmedabad tectonic Block and covers an area of 48 Sq. Km. The Block is under exploration stage.
Block CB-ONN-2005/9 (CB-9) is located in the Broach- Jambushar tectonic Block and covers an area of 132.22 Sq. Km.
The block is under exploration stage. 2 wells have been drilled in this block and both wells have stuck oil.
Internationally, Mercator in consortium with Oil India Ltd. & other has signed Production Sharing Contracts for 2 offshore blocks – Block M-4 & Block – YEB. The 2 blocks together have a total area of over 30,000 km2. Both blocks are in the intial exploratory stage.
2) Floating Production Unit (MOPU + FSO)
In 2010, Mercator won a contract for Charter of a Floating Production Unit (FPU), which is a combination of a MOPU and an FSO for the EBOK Oilfield. To execute this, Mercator provided Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) services successfully. This unique and complex project was executed in a record 432 days, working around the clock and coordinating the project from various parts of the world. Mercator is currently operating the FPU.