Abstract: A microtunnelling apparatus and system that includes an external drive system having rotational and linear thrust drive means, a drill head section having drill rotor and drill rod and connecting to intermediate drill rods allowing extension of the boring hole created by the drill head section driven by the drive system. The drill head includes a modular construction having a plurality of circular disc like elements, a bearing module, a steering module, a spacer module, and a mounting module, for axial alignment and abutment and mounting within a cylindrical steering shell. Directional steering of the drill head includes a plurality of substantially radially extending channels in steering module, each with an hydraulically movable protuberance movable by control means to redirect the outer steering casing and thereby redirect the drill head section mounted on the distal end of the drill rods.