Australian Oilex Gets India Extension
Australia-listed Oilex said April 4 that the Indian oil and gas ministry has extended the Cambay and Bhandut production sharing contracts.
Indian upstream regulator, the Director General of Hydrocarbons, has been requested by the oil and gas ministry to hold the management committee meeting and take the necessary action in accordance with the Indian government policy on the extension of small and medium sized discovered fields dated March 28 2016, Oilex said.
“The extension will provide intrinsic value to our Indian projects and the company, supported by increased interest from several Indian and foreign parties for possible participation in the Cambay PSC. Our efforts are now geared towards achieving commercial gas flow rates in the EP-IV formation,” Oilex managing director Joe Salomon said. “Our confidence in India as a country of immense potential remains resolute and the company continues to evaluate additional project opportunities where we can apply international technologies and capitalise on the expertise of our team.”
Cambay and Bhandut fields are located in the western Indian state of Gujarat. In July 2005, Oilex entered into an agreement with the Cambay Field joint venture, comprising Gujarat State Petroleum Corporation and Niko Resources to acquire a 30% participating interest in the PSC covering the Cambay field. Oilex acquired an additional 15% equity interest from Niko and now holds a 45% participating interest in the Cambay PSC.
Production of gas commenced from the Bhandut field in spring 2016. Oilex is operator and holds 40% equity in the Bhandut field, with Gujarat State Petroleum Corporation holding the remaining interest.