Hazira consortium denies آ‘floggingآ’ the gasfield

Vol 8, PW 11 (25 Aug 04) Exploration & Production

No company accused of flogging a gasfield would take the accusation lightly and Niko is no exception.

A source close to the Canadian operator vehemently denies any accusation of excessive production from Hazira. The water cut is due to natural depletion of the wells, we learn.

This happens in every producing property. Some wells get depleted and then you enter nearby zones to maintain production.

He claims the ministry and not the consortium is to blame for delaying the MC meeting to resolve outstanding issues. This month Niko requested a meeting on 8th September.

The DGH wrote back saying theyd prefer the meeting on 9th September. But thats not convenient for Niko.

Our source insists the DGH is responsible for most of the unresolved Hazira issues. The DGH issued permission for four compressors and then withdrew it, he adds.

How can they do this They are trying to cover up the mess theyve created. Why, asks our source, is the DGH ready to approve every request from Cairn at the adjacent Lakshmi gasfield They approved compressors for Lakshmi even though Lakshmi and Gauri together produce less than Hazira.

Theyve also approved a bigger diameter pipeline for Cairn. Complains our source: The DGH doesnt appreciate the work Niko and GSPC have done at Hazira.

They should compare our investment with Cairns investment at Lakshmi and Gauri. Its like comparing a slum house with an upmarket property.

Our source adds that Hazira needs compressors because of the nature of its gas-producing wells. There are 32 different sands at Hazira.

Not all of them are interconnected. Of the 18 wells on the Land Based Drilling Platform, half are low-pressure gas wells with the rest high-pressure.

Hazira needs compressors to maintain the pressure at a certain level, we learn. Hazira yields Rs15cr ($3.13m) every quarter as profit petroleum to the government.