Prize talks to Selan Exploration for Bakrol

Vol 6, PW 19 (20 Nov 02) News in Brief

Prize Petroleum, the upstream arm of Indian refiner Hindustan Petroleum, isat an 'advanced' stage of negotiations to buy Selan Exploration's small producing Bakrol field in Gujarat.

"Talks began six months ago and are now at an advanced stage," we learn. Until now, Prize has been unsuccessful in its quest to enter the exploration and production business.

Yet if Selan is serious, it had better hurry up. Prize is getting tired of what it perceives as "delaying tactics" by Selan.

"They keep postponing decisions on one ground or the other. Now they tell us they plan to buy back their shares and only after than can the Bakrol sale go through." The 36-sq km Bakrol field was discovered by ONGC in 1996.

Oil in place is about 3.5m barrels, of which 490,000 barrels are recoverable. Average daily production is 140 b/d of 32.7 degrees API.