Prize in payment row at South Rewa

Vol 17, PW 3 (05 Sep 13) News in Brief
     

HPCL subsidiary Prize Petroleum is rumoured to be struggling to pay bills at its 13,277-sq km South Rewa onland block in Madhya Pradesh or SR-ONN-2004/1.

A well-placed source claims disagreement between Prize and partner Jaiprakash Associates. “Jaiprakash lost interest after the first well was dry,” he says.

“They are not paying their share of costs, forcing Prize to stop payments.” Prize drilled a dry hole in July this year to 3500 metres.

A second well was spud on August 18 which will be drilled to 2500 metres. Jaiprakash denies any disagreement.

“We are going strong and drilling is on,” says a company source. “There are no problems.

” Prize identified drilling locations for three Phase-I committed wells from 300-sq km 3D and 2000-lkm 2D shot by Geofizyka Torun in 2009. Prize (10% and operator) and Jaiprakash Associates (90%) signed the PSC on March 2, 2007 but it kicked in from July 12, 2007 after they secured the PEL.