Oilex Gets Green Signal from Indian Government to Sell Cambay Field Gas

Oilex said Tuesday that it has received go ahead from the relevant Government of India authorities for the sale of gas from Cambay field in Indian state of Gujarat, specifically Cambay-73 well.

“This is a critical milestone for increasing production from the field and supplying gas to the local market. Returning Cambay-73 to production will also facilitate the collection of key data to further assess the reservoir deliverability of the same reservoir intersected by Cambay-77H,” the company said in a statement.

According to the statement, the Cambay Joint Venture will proceed to establish the appropriate production facilities for Cambay-73 and initially connect the production to a low pressure pipeline grid servicing the local area.

“We are very pleased to receive the endorsement from the Government of India to sell gas from Cambay-73. As soon as the gas composition from Cambay-77H is confirmed to be similar to Cambay-73, Oilex will be in a strong position to add to our production from Cambay Field. The contracted price remains Commercial-in-Confidence and was determined by a competitive bidding process. This reassessment will enable Oilex to consider delivery of pipeline quality gas to the high pressure grid located approx. 7 km from this region the field,” Managing Director of Oilex, Ron Miller, said.

Cambay has an independently certified 2C Contingent Resource in place of 37 million barrels of oil and 222 BCF gas.