Hardy to double PY-3 production to 8000 b/d by 2009

Vol 12, PW 9 (18 Sep 08) Exploration & Production
     

UK-based Hardy Oil is confident it can reverse declining oil and gas production from its PY-3 field offshore eastern India by the end of this year.

Production at PY-3 is sharply down to less than 3000 b/d, compared to around 4500 b/d in September last year. PETROWATCH learns Hardy plans to bring Transocean rig Actinia on location sometime in November to repair well PD-4 and boost output.

“PD-4 is producing at very low rates,â€‌ we hear. “Hardy wants to convert PD-4 from a vertical to horizontal well by cutting a window through the existing well bore.

â€‌ This is expected to happen by December and total production is expected to slowly climb to 4000 b/d. After repairing well PD-4, Hardy plans to demobilise Actinia.

“Actinia is unsuitable to drill new wells at PY-3,â€‌ we are told. “She can be used only on an existing well which has a â€کChristmas Tree’ in place.

â€‌ After PD-4 is converted to a horizontal well, Hardy will begin a $90m Phase-III development programme at PY-3, which includes two additional lateral wells (a producer and a water injector) and the installation of some â€کgathering’ pipelines. Hardy has not yet hired a rig to drill the two planned wells.

“Offers are under evaluation,â€‌ we hear. “Both wells are likely to be drilled by mid-2009 and production is forecast to rise to 8000 b/d by the end of 2009.

â€‌ Gas production at PY-3 is also declining. In September 2007, PY-3 produced around 3.7m cf/d but the flow rate a year later is down to less than 3m cf/d - but expected rise to 4m cf/d by the end of the year after PD-4 is converted to a lateral well.

Hardy is “continuously looking at options to monetise this gas,â€‌ we hear. Separately, no decision has been taken on whether to hire a Floating Production Storage and Offloading (FPSO) unit to replace Aban-owned Tahara when its PY-3 contract ends in July 2009.

Present production levels do not justify a FPSO. “But at 8000 b/d, a FPSO may be viable.

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