Cairn and Niko almost in full agreement on GBA

Vol 8, PW 4 (19 May 04) News in Brief

Cairn Energy and Niko Resources of Canada are yet to agree the cut-off (start) date of their Gas Balancing Agreement (GBA) for the Gauri and Hazira gasfields.

The other details of the GBA have been agreed, reveals a source. The only thing pending is the cut-off date.

If after that date either side breaches the agreement, penalties will be imposed on the party that violates the agreement. The Gas Balancing Agreement is the first of its kind in India and was ordered by the DGH following complaints from Cairn that gas from its Gauri field at CB-OS/2 is migrating to the adjacent Niko-operated Hazira gasfield.

Gauri gas began flowing to customers from 2nd April - a month ahead of the May deadline. PETROWATCH learns Gauri is flowing 40m cf/d.

More production is planned but Cairn wants to first, bring up the wells slowly and make sure there are no problems. Later this year, Cairn plans an oil production test at Gauri.