About $200m budget for Cluster 7 marginal fields
Prize Petroleum and M3nergy’s development plan – validated by TRAC International - for Cluster 7 will see CAPEX of about $200m for a three well-head platform from which 13 wells will be drilled.
If everything goes to plan, the consortium wants to begin production in 2009. Based on data simulation of wells drilled previously by ONGC, the Prize consortium estimates oil production can be 8000 b/d.
“If we decide to produce from several layers simultaneously, daily production can go up to 14,000 b/d,â€‌ we hear. “But that will depend on the overall economics.
â€‌ Oil will be commercially produced first, while the gas (1m cubic feet/day) will be initially used only internally. Prize estimates oil production will continue for about nine years and gas production for six years.
Cluster 7 is spread over 230-sq km and lies in 70 metres water depth, about 180-km west of Mumbai on the margins of ONGC’s Mumbai High South field. ONGC had drilled only nine wells at Cluster 7 before Prize won the service contract.
Four reported hydrocarbon shows and five were dry holes. “It is not possible to re-enter any of the ONGC wells,â€‌ we are told.
“Our reservoir studies and geological and geophysical interpretation of ONGC data show that many of these wells are not at the right location.â€‌ Adds our source: “This is not to say that ONGC was wrong in selecting those locations.
Such things happen in our business.â€‌ What is important, says the consortium, “is that out of the nine wells drilled, hydrocarbon shows came in four.
That’s a very good success rate.â€‌ The Cluster 7 reservoir is made up of several layers, each between six and 15 metres thick.
Imminent consortium discussions with ONGC will centre on the development strategy and arrangements for oil and gas delivery. “ONGC would like to see that (implementation of) our plan does not damage the reservoir,â€‌ says our source.
“We would also like to come to an agreement with them about possible use of one of their Mumbai High platforms to process the crude.â€‌