HOEC excitement ahead of Dirok production

Vol 20, PW 6 (01 Dec 16) Exploration & Production

HOEC is on a roll.

In an effort to revive its fortunes, not only has the BSE-listed company bid for nine areas in the Discovered Fields Round, it is also preparing for first production from three Dirok discoveries at the AAP-ON-94/1 block in Assam. Last month (November) HOEC converted Dirok-4 to a producer.

In October it did the same for Dirok-2 and in July for Dirok-1. Also planned are two new wells Dirok-3 and Dirok-5 using a National 110-UE model Essar Oilfield 1500-hp rig hired at $25,000/day and already on location.

Both wells will be drilled to 2500 metres TD. "HOEC wants to start drilling Dirok-3 by the end of this month (November)," reported a senior company source on November 22.

"After completing Dirok-3 it will immediately move to Dirok-5." He adds HOEC plans to bring all discoveries onstream simultaneously and to eventually ramp up production to 600,000 cm/d and 500 b/d of condensate for sale to Oil India and the Brahmaputra Cracker and Polymer complex, commissioned by prime minister Narendra Modi on February 5 this year (2016). HOEC is also upbeat about the Discovered Small Fields round despite fierce competition for the nine areas where it bid.

"We're eagerly waiting for bids to be opened," says HOEC. "It's likely to happen this month (December) but expect another month before contracts are awarded."