'Exit Kharsang!' Ranjit Rath tells GeoEnpro

Vol 27, PW 18 (05 Sep 24) People & Policy

Oil India wants to eject HOEC subsidiary GeoEnpro from the 9.94-sq km Kharsang field in Arunachal Pradesh.

Oil India chairman Ranjit Rath had harsh words for GeoEnpro at the Operating Committee (OC) meeting at its Noida HQ on July 18 (2024). "If you can't perform, then move aside," was his clear message, according to an industry source.

Kharsang, a pre-NELP field lying ring-fenced in the Ningru PML and producing since 1983, currently produces around 380 b/d, which GeoEnpro aims to increase to 2200 b/d by drilling additional development wells. "If GeoEnpro is stripped of the operator role, then it might go to Oil India (which holds 40% in the field)," says a source.

Invenire Energy, which holds 25% in Kharsang, is said to support Oil India's move to strip GeoEnpro of the operator position. Our source tells us Rath was angry when Ajay Ray, GeoEnpro CEO, told the OC meeting that it could not drill the 18 wells planned this year (2024-25).

The Management Committee had earlier approved an 18-well programme for 2024-25 and another 18 in 2025-26. In an April (2024) meeting chaired by Oil India director operations Pankaj Goswami, GeoEnpro said it could drill only 12 of the 18 wells this year.

At the July 18 (2024) meeting, Ray expressed GeoEnpro's inability to drill even 12 wells and said it would proceed with only three. However, on July 25 (2024), GeoEnpro submitted a revised environment ministry application to drill 40 development wells and five exploration wells at Kharsang.

"If GeoEnpro-HOEC cannot complete the number of wells they are supposed to complete within the schedule, then it is time to remove them as the operator," Rath reportedly snapped at the meeting. "Let us start the paperwork."

Oil ministry officials are said to support Rath in his suit to push GeoEnpro out. Under an FDP prepared in 2023, GeoEnpro planned 36 development wells to 1200 metres and four exploration wells to 4000 metres using a 1000-hp rig and a 2000-hp rig.

"Spend the money and hire the rigs, but increase production," Rath thundered at the meeting.

For a 30-article or annual subscription rates click here

A well-placed source says HOEC lacks the funds to run an extensive drilling campaign. “HOEC is swimming in debt, and payments to several contractors are pending,” he claims. In February 2024, HOEC told the environment ministry that its four planned infill wells at the Asjol and North Balol blocks were delayed for “financial reasons.” HOEC managing director R Jeevanandam, popularly known as Jeeva, was conspicuous by his absence at the July 18 (2024) meeting. “All partners had instructions to remain present,” we hear. “But Jeeva excused himself and sent Ajay Ray instead.” When contacted Jeevanandam responded with a single-line email: "We are awaiting EC to commence drilling; no such demand as stated."

'Exit Kharsang!' Ranjit Rath tells GeoEnpro

Related

Most Read