Oilex restarts gas production at India's Cambay field
Sydney-listed Oilex has restarted production and gas sales at the Cambay field in the Indian state of Gujarat, the company said on April 11.
“Subsequent to the receipt of the consent to operate from the Gujarat Pollution Control Board, production has recommenced on the Cambay field together with gas sales,” the company said.
The government of India has approved the transfer of assignment of the 55% participating interest in the Cambay field held by state-run Gujarat State Petroleum Corporation (GSPC) to Oilex.
Oilex had been in dispute with GSPC over ownership. In April last year, the two parties settled the matter and in June Oilex executed a binding agreement to acquire GSPC’s 55% interest in the Cambay field, providing the company with a 100% working interest in the Cambay concession. The company in December received the final court order regarding the dispute.
“The re-establishment of production from the Cambay gas field has occurred soon after the Indian government announced that the price of domestic gas would more than double from $2.9/mn Btu to $6.1/mn Btu. This will provide a material benefit to Oilex’s cash flow,” CEO Roland Wessel said.