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Friday, 09 January, 2009, 01:40 GMT | more >>

Oilex expands Indian presence

By Upstream staff

Oilex has received Indian government approval to buy 40% operating interests in the Bhandut and Sabarmati production sharing contracts and an additional 15% in the onshore Cambay field from Niko Resources.

Bhandut has produced about 700,000 barrels of oil since 1993 and was producing 400 barrels of oil per day in 2002 when likely formation damage incurred during workover activities reduced output to the current 20 bpd from two wells.

Oilex said that it will shoot 18.4 square kilometres of 3D seismic over the block to refine its redevelopment plan for the field. It also plans to drill two wells after the monsoon season early in the fourth quarter of 2007.

The Sabarmati discovery well was drilled in 1984 by ONGC without the benefit of seismic data and has produced oil at intermittent rates from an Eocene interval.

The company is investigating the possibility of acquiring a seismic survey over the block in the first half of 2007. This survey, together with studies of the potential increase in production capacity of the Sabarmati-1 well, will provide the basis for possible further drilling later this year.

The deal also increases Oilex’s stake in Cambay up from 30% to 45%.