Baker prepares to unblock D-1 well for HOEC
HOEC hopes to finally bring its blocked D-1 well in the 56-sq km offshore Mumbai MB/OSDF/B-80/2016 block (B-80) back into production with a little help from Baker Hughes.
Baker is preparing to mobilise to remove a reservoir blockage at D-1, caused mainly by asphaltene (found in crude oil, which frequently causes blockages) and wax deposits. HOEC has struggled to revive the D-1 well since it was shut down when cyclone Biparjoy hit the west coast in June 2023.
"Baker has begun mobilising chemicals and equipment to Mumbai Port; from there, it will ship it to the offshore field," says a HOEC source. "Operations to remove the blockage are expected any time now."
Within seven to ten days, HOEC expects Baker to complete the operation. "If everything goes to plan, D1 should be activated and put on production either by end-March or early April (2024)," we hear.
"But if Baker finds more needs to be done, we will do that." Late last year (2023), HOEC awarded the $300,000 contract to Baker to carry out the chemical treatment.
In January (2024), Baker submitted a detailed report to HOEC after removing mechanical obstructions caused by the formation of gas hydrates or solid crystals in the D1 flowline and tubing. "Now the reservoir blockage remains for Baker to resolve," we hear.
To revive the well, HOEC is also considering bringing in a rig. "We are prepared for a rig intervention as the last option," adds our source.
"But that can happen only after the monsoon (from June-September)." Only after Baker completes the chemical treatment will HOEC know whether the rig intervention is needed.
Before cyclone Biparjoy, D-1 was pumping out over 1200 b/d and 169,900 cm/d (6m cf/d) gas. HOEC sold its first B-80 crude consignment of 430,652 barrels to IndianOil for $80.27/barrel on January 30 (2024).
HOEC managing director R Jeevanandam told analysts at an earnings call on February 14 (2024) that "the price realised is the average Brent price for the month of offtake less a 0.06% discount." Most of the oil came from the D-2 well, where production continues at over 800 b/d and 99,110 cm/d (3.5m cf/d) gas.