Australian Oilex Looking to Farm-out Interest in Indian Cambay Field

Australian Oilex is in talks to farm-out a stake in its tight gas project in the Cambay field in the Indian state of Gujarat, it said June 6.

“The company is currently in discussions with several potential partners who are undertaking data room reviews of the EP-IV tight gas potential at Cambay.  Should any change in the structure of the joint venture eventuate, a restructure of the company’s ongoing funding commitment to the Cambay project may ensue,” the company said.

Oilex is working on the field development plan as part of its application for an extension of the production sharing contract (PSC) term beyond September 2019.  The application is required to be lodged by September 2017, it said.

In July 2005, Oilex entered into an agreement with the Cambay field joint venture, comprising Gujarat State Petroleum Corporation (GSPC) and Niko Resources to acquire a 30% participating interest in the production sharing contract covering the Cambay field. Oilex acquired an additional 15% equity interest from Niko and now holds a 45% participating interest in the Cambay PSC.

Meanwhile, the company has identified upside exploration potential on the Bhandut PSC, also in the state of Gujarat, and is in discussions with a potential buyer for its interest in the Bhandut field. Production of gas commenced from the Bhandut field early last year. Oilex is operator and holds 40% equity in the field, with GSPC holding the remaining participating interest. 

The Australian firm is also evaluating new business opportunities ranging from discovered undeveloped resources with exploration upside to existing production.  

Shardul Sharma