Oilex selects Schlumberger for its India gas project
Australia’s Oilex on April 14 said it has signed a letter of intent with Schlumberger for the supply of hydraulic fracturing, coiled tubing and nitrogen, and perforation services for the planned re-frack of the Cambay C-77H well in July 2022.
Due to the higher than anticipated C-77H re-frack costs caused by a global shortage of fracking services and equipment, and the delayed startup of gas production on the Cambay field, Oilex plans to raise additional funds over the next approximate month, the company said.
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In addition, Oilex has negotiated a revised gas sales agreement with Ahmedabad-based Enertech Fuel Solutions Private for the sale of gas from the Cambay field located in the Indian state of Gujarat. The revised agreement is based on the recently announced government of India's domestic gas price of $6.1/mn Btu plus an additional 20% premium. The revised gas price is now $7.32/mn Btu compared with the previous gas price of about $4.2/mn Btu.
Oilex had been in dispute with state-run Gujarat State Petroleum Corporation (GSPC) over ownership. In April last year, the two parties settled the matter and in June Oilex executed a binding agreement to acquire GSPC’s 55% interest in the Cambay field, providing the company with a 100% working interest in the Cambay concession. The company in December received the final court order regarding the dispute.