Tata Petrodyne takes aim at Hardy over PY-3

Vol 16, PW 17 (21 Mar 13) Exploration & Production
     

Hardy Oil is under fire from partners at the shut-in PY-3 field offshore Chennai for delaying the submission of a revised Field Development Plan (FDP).

Hardy has missed two DGH deadlines to send in the FDP: one on January 23, the other on February 23. Impatient partner Tata Petrodyne wrote to Hardy last week, marking copies to partners HOEC and ONGC, asking why the FDP deadlines have not been met and what is going on Tata wants an update and asks Hardy to prepare the FDP “as soon as possible.

” Tata is yet to receive a reply. ONGC is also unhappy with Hardy as PY-3 production of 3000 b/d has been shut-in for over a year following a dispute with the DGH.

Worse, HOEC continues to insist that the field’s static geological model is reviewed by parent company Eni. HOEC repeated its position at a PY-3 technical committee meeting on January 8 and 9 at Chennai where Hardy unveiled a 10-year production profile.

“HOEC said it does not agree with the profile as the static model has not been revised,” we hear. HOEC recorded its dissent and signed the minutes under protest.

A Hardy spokesman in London declined to give any timeframe to complete the FDP. “Hardy continues to work on the FDP,” he said.

Sources speculate Hardy is constrained by the lack of consortium consensus on the way forward. “Hardy has just 18% in PY-3,” we hear.

“It is worried HOEC might not pay cash calls for the FDP.”