Hindustan Oil Exploration Company Grants Petroleum Mining Lease To Dirok Gas field
Hindustan Oil Exploration Company (HOEC) has announced the grant of Petroleum Mining Lease to Dirok field, Assam, on August 25, 2017 and the commencement of commercial production from the field forthwith.
This information was shared by HOEC on Monday (28 August) in a Bombay Stock Exchange filing.
On successful testing and completion of the sixth well, all the six wells in the field are ready to hook up for production.
The company expects the initial production to be about 10 million standard cubic feet per day (mmscfd), restricted by the capacity of by 4' pipeline and will be ramped up to full capacity over the next six months with the commissioning of Modular Gas Processing Plant (MGPP).
Dirok Field, located in Tinsukia District of Assam has been developed in a record time of 27 months, by the joint venture (JV) consisting of Oil India, Indian Oil Corporation (IOC) and HOEC, with HOEC as the operator.
Oil India will buy the gas at the price fixed by the government based on a basket of international gas market prices, which will be revised once in six months. IOC will buy the condensate at a price equivalent to the price of a bench marked crude oil.
HOEC is building facilities that can deliver 36 million standard cubic feet of gas (equivalent to 1 million standard cubic meters per day) and over 1000 barrels of condensate per day, nearly doubling our initial estimated volume of 20 mmscfd stated in the approved Field Development Plan (FDP).
P Elango, Managing Director said, “This successful initial campaign of six wells ensured the estimated hydrocarbon reserves and more importantly, the campaign has given enough leads to pursue the upside potentials by subsequent drilling campaigns. Therefore, our JV will be submitting revision to the approved FDP to continue the focus on further development of Dirok Field.”
“For HOEC, this milestone provides the platform to the next level of profitable and sustainable growth and we are committed to repeat this low cost and fast track development model in both our onshore and offshore assets.”
