Oilex Goes for Cost Cutting at its India Gas Exploration Program

Oilex Ltd on Friday said it has undertaken cost cutting program covering field operations and office costs in India in response to continued low oil and gas prices and the reduced activity level.

Technical work is underway investigating alternative low cost drilling and development strategies to access hydrocarbon volumes present in the Eocene formation, the Australia listed company said.

Oilex is negotiating with its Indian partner GSPC, which is facing financial problems, to address payment of outstanding cash calls, contributions to programmed activities, and annual budget resulting in delays to planned activities and cashflows.

Cambay field, India

Gas sales from Cambay-77H continue with an average gas production rate for the March quarter of 248,870 scfd or 43 boepd with 112,000 cubic feet net attributable. Average associated condensate production was 11 bopd with bopd net to Oilex.

A phased development plan for Cambay-77H and Cambay-73 is being finalised for government approval to allow continued production from Cambay-77H and to bring Cambay-73 back on line, Oilex said.

Bhandut field, India

At the Bhandut field, gas production commenced in early April, flowing at an expected stabilised rate of 700,000 scfd or 120 boepd.

The joint venture approved the work program and budget for Bhandut field for the Indian financial year starting April 2016.