Oil India needs rig for Assam NELP block

Vol 17, PW 21 (05 Jun 14) News in Brief
     

Oil India is expected to float a tender by end-2014 for a rig to drill seven wells at its 84-sq km NELP-VIII Assam-Arakan basin block AA-ONN-2009/4 in Assam's Jorhat district.

"There have been gas seepages at the block," says Oil India. "It's near the (gas producing) Amguri field.

Recently, we encountered gas shows at Khatisona, near the Jorhat Fault." The block is also near proven fields like Lakwa, Geleki and Rudrasagar to the east and Borholla-Changpang and Koraghat to the south-west. Oil India estimates total in-place reserves of 85m boe of which recoverable resources are 21.5m boe in the Demulgaon and Rudrasagar formations.

Oil India plans to spend $43m on drilling the seven wells committed in the four-year Phase-I which ends December 8, 2015. It has committed to three more wells in the three-year Phase-II.

Oil India (50% and operator) shares the block with ONGC (50%). Signed on June 30, 2010 the production sharing contract kicked in on December 9, 2011.