As expected HOEC delays Dirok development

Vol 19, PW 19 (02 Jun 16) News in Brief

HOEC has pushed back plans to develop its Dirok-1, 2 and 4 discoveries at Assam block AAP-ON-94/1 because of delayed environmental clearance.

"We gave a detailed presentation to the environment ministry on April 1 answering all queries," reports a HOEC source. "Approval is expected in June." Until then expect Essar Oilfields rig National 110-UE, hired by HOEC in January for $25,000/day, to remain idle.

In 2005, UK-based operator Premier Oil relinquished its 38% stake at AAP-ON-94/1 over concerns that part of the Dirok reservoir lies beneath the 112-sq km ecologically sensitive and protected Dehing Patkai Wildlife Sanctuary inside the 305-sq km block. HOEC stresses that all development work will be undertaken outside the sanctuary's boundary and wants to convert Dirok-1, 2 and 4 into producers and drill a fourth 'firm' and fifth 'optional' well under a $85m field development programme approved by the oil ministry in May 2015 and submitted to the DGH in August 2014.

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