Niko asked to explain آ‘unauthorisedآ’ work at Hazira

Vol 8, PW 3 (05 May 04) Exploration & Production

Argument at Hazira over the need for high-pressure compressors is spilling into other areas of the fields development.

This report learns the DGH objects to Nikos unapproved drilling of Hazira Shallow Well No.1 last October.

It emerges that the ministry only came to know of the well through a Daily Drilling Report sent by Niko to the DGH in October. Neither was the well approved by the Management Committee nor was the DGH informed in advance that there would be drilling activities.

In an angrily worded note, the DGH asked Niko to, clarify the status of this well and explain why this well was under drilling without the approval of the management committee. We learn Niko was warned that, drilling of any well without the consent of the DGH and the management committee is a serious violation of the PSC.

Theres also the issue of wells being worked over without official consent. For instance, the re-completion of Hazira well No.

14. This well was taken up for workover without the consent of the Management Committee.

Adds a ministry source: It is a matter of serious concern that Niko had neither obtained approval of the MC nor did they submit any workover plan for this particular well. A stern note was sent to Niko, advising it to abide by the provisions of the PSC and submit proposals for workover of wells before actually taking up the wells for workover.

We learn the ministry has also raised objections to several variations in the production budgets submitted by Niko for Hazira, Bhandut, Sabarmati fields as well as variations in the quarterly profit petroleum statements for these fields. These large scale variations, we are told, have adversely impacted the governments share of profit petroleum.

Late February, Niko was asked to resolve these issues immediately. Niko was also asked to, furnish proper justifications and reasons, in detail, for such significant variations so that the estimates of profit petroleum could be finalised.