Sun makes money from ex-RIL block in Cambay

Vol 22, PW 1 (18 Oct 18) Exploration & Production

Where Reliance failed, Sun Petro looks set to succeed.

Dilip Shanghvi's Mumbai-based company is gearing up to begin production at former Reliance block CB-ONN-2003/1 by April 2019. On October 13, Sun invited EoIs from companies interested in buying up to 1000 b/d from NELP-V block CB-ONN-2003/1, which it is taking over after a sale purchase agreement signed on June 14, 2018 with previous operator Reliance (70%) and BP (30%).

Sun paid Rs132.25cr ($18m) to acquire 100% at this 635-sq km block lying 130-km south of Ahmedabad. In focus is Part A of the block near ONGC's 81.25-sq km Akholjuni field and the tiny 6.3-sq km Kanawara field held by Gujarat Natural Resources.

"The eastern part of Part-A holds promise," says a company source. Sun also wants to start selling oil from its Hazira field where it is operator with 33.33% and GSPC holds 66.67%.

Hazira produces 70 b/d but Sun expects production to more than double to 150 b/d by April next year (2019). At CB-ONN-2003/1 and Hazira, Sun is offering sweet light 42-degree API crude.

In its five-page EoI Sun invites offers for drilling, hydro-fracking, environmental sampling and financial services, drilling materials and equipment, land survey and soil investigation agencies and the hire of separators, tanks and CNG and LNG packages. Interested companies have until October 29 to submit EoIs.