HOEC selects Dalma Energy for 4 wells in Gujarat

Vol 8, PW 23 (23 Feb 05) News in Brief

Hindustan Oil Exploration has chosen Oman-based Dalma Energy as its contractor to drill four onland wells in three of its Gujarat fields: Palej (CB-ON/7), Asjol and North Balol.

HOEC issued the LoI to Dalma a fortnight ago after a tender last November. One rig will be used to drill all four wells.

Under the contract Dalma must mobilise its rig by the end of this month and begin drilling by end-March. At Palej HOEC wants to drill one exploration and one development well, each to a depth of 2100 metres.

In January this year, ONGC exercised its 30% walk-in option to the Pramoda discovery at Palej, announced in January 2003. HOEC has 35% and Gujarat Petroleum another 35% at Palej.

One appraisal well each is also planned Asjol and North Balol. Asjol is producing small quantities of crude and North Balol is expected to begin producing in one month.

Dalma's rig can drill up to 3500 metres.