HOEC marches ahead with aggressive E&P plans

Vol 22, PW 3 (15 Nov 18) People & Policy

Not long ago private sector explorer HOEC was a lost cause.

But no longer. In its end of year annual report released on October 23, BSE-listed HOEC, led by former Cairn chief Pandarinathan Elango, promises an ambitious programme to ramp-up production and accelerate E&P across 10 assets where it is operator or holds a stake.

Most attention is promised at DSF-1 block MB/OSDSF/B-80/2016 or B-80 where HOEC confirms it is in talks to secure a jack-up for conversion to a Mobile Offshore Production Unit (MOPU) to deliver 5000 b/d oil and 15m cf/d gas by latest June 2020 following DGH approval of a two-well FDP on December 27 (2017). At pre-NELP block AAP-0N-94/1 in Assam, HOEC says it submitted a revised FDP on October 12 (2018) that includes four new development wells to increase production from present levels of 35m cf/d (900,000 cm/d) to 55m cf/d (1.56m cm/d) under a 'Greater Dirok Area' plan that includes the adjoining and just-awarded 79-sq km OALP-1 block AA-ONHP-2017/19, the 16.45-sq km DSF-1 block AA/ONDSF/KHEREM/2016 or Kherem in Arunachal Pradesh and Kharsang in Assam, where HOEC holds 50% in operator GeoEnpro through its Geopetrol acquisition in April 2017.

At Kherem, HOEC says it has secured forest clearance and expects PML transfer from Oil India by latest March (2019) while at Kharsang, producing 711 b/d, it awaits DGH approval to drill additional "shallow" wells targeting Namsang and Upper Girujan formations to ramp-up production.

At PY-1 offshore Chennai, HOEC celebrates an almost 400% hike in gas production from an average 2.35m cf/d (67,000 cm/d) in April, May and June (2018) to an average 9.8m cf/d (278,000 cm/d) in July, August and September (2018). "After the PY-1 re-entry campaign," writes HOEC, "the field is consistently producing 10m cf/d (280,000 cm/d)." Confident PY-1 can produce more, HOEC says on September 21 (2018) it applied for a 10-year extension to the PSC until 2030 and has received environment ministry Terms of Reference (ToR) for a fresh drilling campaign to target the potential of wells Venus, Jupiter, Saturn and Pluto, "in stages." Less optimistic is HOEC's prognosis for Hardy-operated PY-3 adjacent to PY-1 which HOEC reminds us is shut-in since July 31, 2011 "when it was producing 3000 b/d without any sub-surface issues." At PY-3, HOEC repeats its proposal for a "most cost-effective" integration of PY-1 and PY-3 production facilities through a 6-km pipeline. In Gujarat, HOEC describes CB-ON/7, producing an average 22 b/d from three wells, as having "potential for additional wells and says it wants to "secure and explore" the R-2 area.

HOEC marches ahead with aggressive E&P plans

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