DGH to Oil India - relinquish RJ-ONN-2005/2
After two dry holes and little hope of any future commercial discovery, the DGH has denied Oil India's request for a 17-month extension to complete its Minimum Work Programme at Rajasthan block RJ-ONN-2005/2 near the Pakistan border.
Instead, it's telling the company to relinquish the block. DGH sources tell this report they wrote to Oil India confirming the regulator's decision last month (December) after an initial six-month extension granted on June 24, 2015 expired on December 24, 2015.
"No discovery has been made on the block," reports a DGH source. "And Oil India did not meet the conditions that would permit us to give a further 17-month extension." On July 7, 2015, Oil India announced to partners HOEC and HPCL-Mittal that it had identified four promising well locations (tentatively named 1, 5, 7 and 9) of a nine-well commitment but subsequent drilling of two wells, spud on June 12, 2015 and September 30, 2015 resulted in disappointing dry holes.
