Typical rotatory drill heads designed for vertical drilling can be steer to a small degree by using a simple concept: point the bit in the direction that one wants to drill. A common way to achieve this is by the use of a bend near the bit in a down hole steerable mud motor. the bend points the bit in a direction different from the axis of the well bore.

By spinning the drill head at a different rate vs the drill stem, allows the bit to drill in the direction it points.

Reference: PDF document gives an excellent technical summary of the project.