The Government of India has endorsed the sale of gas by Oilex Ltd from its Cambay Field, specifically Cambay-73 well. Oilex Ltd is an oil and gas exploration and production company focused on onshore unconventional opportunities around the Indian Ocean Rim.
In a press release, the company said that this was a critical milestone for increasing production from the field and supplying gas to the local market. Returning Cambay-73 to production will also facilitate the collection of key data to further assess the reservoir deliverability of the same reservoir intersected by Cambay-77H.
As announced previously, the Cambay-77H logs compare favourably to the Cambay-73 vertical well, which produced from the Y zone at around 1 mmscfd (plus condensate) and is located approximately 1 km to the south of Cambay-77H. Cambay-73 commenced flowback unaided, strengthening the correlation between the wells for the purposes of an independent reserve assessment.
Now that endorsement of the gas sales agreement has been received, the Cambay joint venture will proceed to establish the appropriate production facilities for Cambay-73 and initially connect the production to a low pressure pipeline grid servicing the local area. The associated condensate will be stripped out and sold into the established markets that currently receive the Cambay crude oil. Having an endorsed contract removes part of the contingency in the assessment of recoverable quantities of gas as reserves.
“We are very pleased to receive the endorsement from the Government of India to sell gas from Cambay-73. As soon as the gas composition from Cambay-77H is confirmed to be similar to Cambay-73, Oilex will be in a strong position to add to our production from Cambay Field,” Ron Miller, Managing Director, Oilex Ltd, said.
In July 2005, Oilex Ltd entered into an agreement with the Cambay Field JV comprising Gujarat State Petroleum Corporation Ltd and Niko Resources Ltd to acquire a 30 per cent participating interest in the production sharing contract covering the Cambay Field off the Gujarat coast. Oilex Ltd acquired an additional 15 per cent equity interest from Niko and now holds a 45 per cent participating interest in the Cambay PSC.