Essar Shipping & Logistics Limited, Cyprus announced that its wholly owned subsidiary Essar Oilfields Services Limited (EOSL) will invest USD 400 million in the acquisition of onshore and offshore oil drilling rigs. EOSL has been formed to focus on international and Indian onshore and offshore oil and gas drilling businesses.

EOSL's investment plan includes acquisition of a diversified fleet of rigs, for in land as well as offshore drilling rigs. Essar considers that its investment plan in the rigs is opportune as the exploration and production (E&P) activity for crude oil and gas around the world including in India has seen rig utilization rates in excess of 98%. This demand for the drilling rigs is forecast to sustain over the next 3-5 years. The contract drilling rates have nearly doubled in the last three years and are forecast to remain robust.

EOSL whose operations are run out of its office in Dubai, UAE will be employing the rigs for Essar's E&P activity as well as contract drilling for third parties. Essar has considerable experience and an excellent track record in contract drilling services. Essar was the first Indian company to offer contract drilling services in 1985 both for onshore as well as offshore E&P activity

Essar Shipping & Logistics Limited (ESLL) is apart of Essar Global Limited. ESLL has four operating companies under its umbrella:

Vadinar Oil Terminal Limited (VOTL) - Wholly owned subsidiary of ESLL with a focus on investments in crude and product terminals. VOTL has set up a 32 million tonne terminal with crude reception and crude and product storage facility at Vadinar, Gujarat, India

Essar Logistics Limited (ELL) - Wholly owned subsidiary of ESLL carrier out the business of logistics management, transshipment and cargo handling services.

Essar Shipping Limited. (ESL) - ESL owns and operates 26 ships including, VLCCs, product tankers and bulk carriers.

Essar Oilfields Services Limited (EOSL)- Wholly owned subsidiary of ESLL will focus on offshore and onshore drilling activities,

About Essar Global
Essar Global is an international conglomerate operating in six business areas - steel, oil & gas, power, telecom & BPO, shipping and construction with an asset base in excess of US $ 6 billion. It has representative offices world-wide and employs approximately 15,000 people.