Australian Oilex Cuts Jobs, Salaries

Australia listed Oilex said it will embark on a significant additional cost reductions exercise reflecting a proposed reduced activity level for 2017 and the requirement to direct cash resources to a planned vertical well in India.

The company will cut the number of personnel by 30%, Oilex said September 29. At the same time, there will 14% average reduction in salaries and wages for existing personnel. Oilex will also review operations at the Cambay and Bhandut fields in the Indian state of Gujarat.

Meanwhile, the company is in the final stages of planning a vertical well in the Cambay production-sharing contract onshore in the Gujarat. Drilling of the proposed well remains subject to final cost estimates and necessary funding, however it is anticipated that drilling operations will occur in H1 2017.

Drilling of Cambay-77H (Credit: Oilex)

The company will, subject to an agreement with joint venture partner Gujarat State Petroleum Corporation (GSPC), “sole fund/sole reward” the well, with GSPC to provide its ongoing local support for the project. Oilex anticipates the agreement will be finalised in the coming weeks.

In July, the company reaffirmed its commitment to unlocking the multi trillion ft^³ in-place tight gas potential in its onshore Cambay Block in Gujarat. In the quarterly reported released July 30, it said gas sales from Cambay-77H continued with an average gas production rate for the quarter of 152,000 ft³/d.

Shardul Sharma