Oilex Says Near to Closing Indian Sale

Australian producer Oilex said on June 29 it had "substantially progressed" the sale of its 40% stake in the Bhandut production-sharing contract in the western Indian state of Gujarat to India's Kiri and Company Logistics. It expects to close the deal in early July.

Oilex accepted an offer for the stake from Kiri in January, under which it will receive $0.14mn in cash. The company has now submitted all necessary documentation to the Indian government to clear the transaction. Kiri is also set to acquire the remaining 60% of Bhandut from Gujarat State Petroleum.

The Bhandut field began producing small quantities of oil in the late 1980s. Oilex entered the project in 2007, launching a redevelopment plan that lifted its oil output and initiated gas production in 2016. The field is shut in, according to Oilex.