HOEC moves into Oil India office at Digboi

Oil India is preparing to vacate its eastern asset office at Digboi as HOEC moves in to begin work on a 15-year Production Enhancement Contract (PEC) at India's oldest oilfield, discovered in 1889.

Oil India tells us the company is preparing to re-deploy its Digboi staff to nearby projects at Hapjan, Baghjan and Barekuri. "Almost all the buildings will be handed over to HOEC," he says.

"Only the oil tanker station will stay with us." He adds HOEC will begin work to enhance production at Digboi (around 150 b/d from 41 wells) by the end of the year.

"They (HOEC) will do mostly workovers," we hear, "and drill a few new wells in pockets where no clearances are required." On May 19 (2020), HOEC beat Orissa Stevedores and Assam Company to clinch the 15-year PEC with a contract period from April 1 (2020) to March 31 (2035) following Oil India's tender on June 28 (2019).

HOEC promises 13% of the revenue to Oil India from sales of crude, condensate and gas above a fixed baseline. Despite more than a century of production, Oil India estimates Digboi still holds 347m barrels of in-place oil and 4.8bn cubic metres gas.