Sub-sea pipeline from PY-1 ready for first gas

Vol 13, PW 1 (18 Jun 09) Midstream & Downstream

Private sector explorer Hindustan Oil Exploration Company (HOEC) is gearing up to begin first production from the PY-1 gasfield offshore Tamil Nadu following completion of a 56-km sub-sea gas pipeline to shore.

PETROWATCH learns contractors working for HOEC completed a 72-hour operation to hydro-test the 14-inch pipeline on Tuesday (June 9) in preparation for first gas from PY-1, where BSE-listed and part-Eni owned HOEC is operator with 100%. Work to lay the pipeline began in January this year when Houston-based marine contractor Cal Dive International deployed the pipe laying and platform installation barge Sea Horizon.

From January Sea Horizon stayed at PY-1 until end-April after first installing a nine-slot production platform, followed by the pipeline and riser before returning to Singapore. “At the height of activity there were up to 20 vessels operating,â€‌ we hear.

“Barges, support vessels and dredgers were present.â€‌ Marine contractor Fugro provided pipe-laying support services and positioning support for the platform.

PY-1 sits 40-km offshore the ancient settlement of Porto Nuovo on the Tamil Nadu coast and contractors project tell us the gas landfall point is 10-km south of the Poombukar township on the Tamil Nadu coast, near a Single Buoy Mooring (SBM) used for naphtha imports by local electricity generation company PPN Power for its combined cycle 330-MW power plant at Pillaiperumalnallur. PPN is sole customer for PY-1 gas and on April 28, 2007 signed a Gas Sales Agreement (GSA) for 51,000-mmbtu/day (1.3m cm/d) at $3.75/mmbtu for the first two years, increasing to $3.85 for the next two years and $3.95 for years five and six.

On January 25, 2007, HOEC announced it had drilled a horizontal producer (â€کEarth’) at PY-1 to 2351 metres and that results “confirmed satisfactory well deliverability.â€‌ â€کEarth’ was later suspended before being â€کtied-in’ to the production platform last month (May).

Jack-up Deep Driller 8 hired by HOEC to drill three firm and two optional wells is now preparing to drill two additional producers called â€کMercury’ and â€کJupiter’.