Oilex to pick up 30 % in Cambay oil

Australia's Oilex NL will pick up a 30 per cent stake in an oilfield owned by the Gujarat State Petrochemicals Ltd-Niko consortium in Cambay basin for an undisclosed sum.

Oilex will take the 30 per cent equity interest by "farming in" as the operator for the joint venture. The company has sought regulatory approval for this. When contacted, an Oilex India executive refused to comment on the deal.

The company has requested the petroleum and natural gas ministry for expedited clearance, as it wants to start work in the field as soon as possible.

The Directorate-General of Hydrocarbons has also examined the application. The field was acquired by Gujarat State Petrochemicals in 1994. It roped in Niko as a strategic partner to develop the field, which had estimated reserves of 50 million cubic metres of oil.

It is being developed by the joint venture, which has drilled 28 new wells. Until now, additional reserves of 20 billion cubic meters have been discovered. Of the 28 wells drilled, two have been abandoned, five are onshore, 17 are on the land-based drilling platform and four on the offshore platform.