Oilex to restart gas production at Cambay field in India
Australian energy company Oilex plans to resume gas production at India’s Cambay field soon, it said on December 15.
Oilex said that following a final court order issued on December 13 and received by the company on December 14, the previously imposed production cessation on the Cambay field has been removed. The company had been in dispute with the state-run Gujarat State Petroleum Corporation (GSPC) over ownership.
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In April this year, the two parties settled the matter and in June Oilex executed a binding agreement to acquire GSPC’s 55% participating interest in the Cambay field, providing the company with a 100% working interest in the Cambay concession. With the final court order, the dispute is now resolved.
The two currently active wells, C-73 and C-77H, will be placed back on cyclic production and the gas will be processed and exported through the existing production facilities and pipelines, it said.
“This is an important milestone for the company. Production has been suspended for the last three years and the reestablishment of gas production and associated revenues is the next step in monetising the significant gas resources in the Cambay field,” CEO Roland Wessel said.
On December 14, Oilex announced it had arranged the funding required for the refracking of the Cambay 77H well. The Cambay field is located in the Cambay basin in the state of Gujarat.