Hindustan Oil Exploration Company Ltd (HOEC) Wednesday said it has signed a revenue sharing contract with the government for an oil and gas block in Assam that it had won in the first round of Open Acreage Licensing Policy (OALP).
The Block AA-ONHP-2017/19 extends to an area of 79 square kilometres and is located adjacent to Dirok field operated by HOEC, the company said in a regulatory filing to stock exchanges.
"Dirok field and its extension through this Block AA-ONHP2017/19, 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," it said.
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 the Directorate General of Hydrocarbon (DGH) during the meeting held at Chennai on September 28, 2018," HOEC said.
RPoD considers that the estimated ultimate recovery (EUR) to be 305 billion cubic feet of gas against the EUR of 134.09 BCF in 2015 development plan.
"The proposal recommended by the operating committee envisages to drill four new development wells and to explore a new prospect in the North of Dirok field within the existing area.
"Overall, the RPoD targets to increase the gas production by about 55 million standard cubic feet per day from the current level of 35 mmscfd," it said.
HOEC said schedule and costs of RPoD will be firmed up post independent review by DGH and on securing the approval of the management committee.
P. Elango, Managing Director of HOEC, said, "Growing demand for gas and the North East Gas Grid being developed by the public sector oil and gas companies, opens up a new vista of opportunity for early monetisation of resources. HOEC is determined to lever its strength of early mover, by rapidly increasing its production from all the four of its north-east assets to garner a significant market share.
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