HOEC executes Revenue Sharing Contract under Open Acreage Licensing Policy

Hindustan Oil Exploration Company executed the Revenue Sharing Contract with Government of India for Block AA-ONHP-2017/19 it won under the Open Acreage Licensing Policy (OALP) Bid Round I on 01 October 2018 in the presence of Honourable Union Minister of Petroleum & Natural Gas and Skill Development at New Delhi.

As updated on 29 August 2018, this Block extends to an area of 79 sq. km. and is located adjacent to Dirok field operated by HOEC. Dirok field and its extension through this Block AA-ONHP- 2017/19, forms one Greater Dirok Area that is part of a proven petroleum system. Since HOEC understands this basin well and has adequate data, we plan to fast track the exploration phase to quickly monetise on success.

Dirok gas being rich, off take by consumers has been increasing month after month, confirming growing demand for gas in the Assam Market. Taking note of this, Operating Committee of the Dirok field consisting of Oil India, Indian Oil Corporation and HOEC reviewed and recommended a Revised Plan of Development (RPoD) of AAP-ON-94/1 (Dirok field) for submission to Directorate General of Hydrocarbon (DGH) during the meeting held at Chennai on 28 September 2018.

RPoD considers that the Estimated Ultimate Recovery (EUR) under 2P case would be in the order of 305 BCF against the EUR of 134.09 BCF (2P) in the Plan of Development approved by the Management Committee in 2015. The proposal recommended by the Operating Committee envisages to drill 4 new development wells and to explore a new prospect in the North of Dirok field within the existing area. Over all, the RPoD targets to increase the gas production by about 55 mmscfd from the current level of 35 mmscfd. Schedule and costs of RPoD will be firmed up post independent review by DGH and on securing the approval of Management Committee.

Powered by Capital Market - Live News