Oilex ready to flow Bhandut and Cambay gas

Vol 17, PW 5 (03 Oct 13) Midstream & Downstream
     

Australian explorer Oilex is preparing to sell first gas from its oil producing Cambay and Bhandut fields in Gujarat.

Last month (September) Oilex invited EoIs for two-year contracts to buy up to 22,000 cm/d of 'raw gas' supplied in its natural state with impurities. Oilex's Cambay field should produce 7000 cm/d and the Bhandut-3 well at the Bhandut field should produce up to 15,000 cm/d.

“The response has been good,” says Oilex Chief Operating Officer (COO) Michael Maloney. He adds Oilex has so far received six EoIs.

Maloney, who joined the company in July 2012 and is based in Gandhinagar, was unwilling to disclose the price at which Oilex hopes to sells gas. But an industry source adds gas is sold locally at prices ranging from a low of $5.25/mmbtu to $9.25/mmbtu.

Bhandut gas is lean clean gas with 97% methane while Cambay gas has 87% methane, we hear. Oilex will sell the gas from metering facilities at both fields and distribute it by truck or through new pipelines to be constructed by winning bidders.

Oilex will give priority to buyers who can begin taking gas by December 21 this year. Cambay and Bhandut also produce oil, at between 200 and 400 barrels/month.

Operator Oilex (45%) shares Cambay with GSPC (55%). It is located 100-km southwest of Ahmedabad.

Oilex (40%) also shares Bhandut with GSPC (60%). It is located 30-km northwest of Surat city, south Gujarat.

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