Baghewala oil at last starts generating money

Vol 20, PW 22 (27 Jul 17) Exploration & Production

Oil India has at last begun earning from its Baghewala PML in Rajasthan where it plans two development wells by December.

"We've received the first official payment from IndianOil for its Koyali refinery." says an excited Oil India source. Oil India, he adds, earned Rs50 lakh ($78,000) from IOC this month (July) for oil supplied.

Our source's excitement is understandable when you consider Oil India has been struggling to monetise the 'heavy' or highly-viscous oil at this block since 2004. Production currently stands at around 50 b/d from three wells - two previously producing and a third which began producing this month (July) - supplied using three tankers to ONGC which transports it through its pipeline network to Koyali.

Oil India is aiming to add up to 50 b/d more from the two new development wells planned in December: one vertical planned to 1200 metres and one horizontal planned to 1800 metres including a 400 metre horizontal section. "We'll use new methods involving special tubing, capping and cement," says our source.

He adds a light-weight cement with additives will be used and casing will have four stages: 20-inch, 13 and 3/8-inch, 9 and 5/8-inch and 7-inch. More, the company will try to use steam stimulation or cyclic steam injection to bring the oil to surface despite previous attempts by Venezuela's PDVSA to use this method which were unsuccessful.