Heavy crude on offer from Oil India

Vol 20, PW 6 (01 Dec 16) News in Brief
     

Stung by criticism from India's audit watchdog, Oil India is pressing ahead with plans to commercialise its heavy oil discoveries at the Baghewala oilfield and Punam-1 discovery at RJ-ONN-2004/2 in Rajasthan.

By December 6, we'll know who is ready to offtake (by truck) unspecified volumes from a two-year 20-well development campaign beginning March (2017). "In the first year," says Oil India, "we want to complete eight wells." He adds the eight wells will cost Rs90cr ($13m).

Oil India wants a minimum Rs16,618/tonne ($33/barrel) for its crude, which ranges in gravity from 14.7 to 21.8-degree API, according to an October 22 invitation for offers. Supplies are promised for one year, with a possible six-month extension if production exceeds expectations.

Between 1992 to 2012, Oil India drilled nine wells at these two licences, with Punam-1 the most promising, flowing 30,000 b/d during testing in July 2012. But on December 9 (2015) the Comptroller & Auditor General sharply criticised Oil India for delays in selling Punam-1 crude after its endorsement by the DGH through a Declaration of Commerciality on March 5, 2013.