HOEC resumes operatorship of AAP-ON-94/1

Vol 9, PW 18 (15 Dec 05) News in Brief
     

Hindustan Oil Exploration Company will once again be operator at Assam block AAP-ON-94/1 from 1st January 2006, following Premier Oils decision to quit.

A 7th December management committee meeting replaced Premier with HOEC and also decided to proportionately divide Premiers 38% participating interest between the remaining partners. Indian Oil will hold 43.548% participating interest, HOEC will have 40.323% and licence holder Oil India will have 16.129%.

HOEC said Premier did not receive any compensation for letting go of its participating interest. Premier decided to leave the block after the state government declared much of it as a conservation area and after disappointing results from its first exploration well Lakkhi-1.

Says a source: Of the nine or 10 leads identified by Premier, only three fall outside the forest reservation area. Getting permission to drill in the reservation will take at least one year.