Canoro to spend $25m on Changpang oilfield

Vol 13, PW 10 (22 Oct 09) Exploration & Production
     

Nagaland"™s dormant Changpang oilfield is at last going to see some serious investment! PETROWATCH hears Canadian explorer Canoro Resources is planning to spend $25m as service contractor to reactivate the 12-sq km field, abandoned by ONGC in 1994 amid threats from armed insurgents.

Canoro is well-placed to revive Changpang: just 17-km away sits the Amguri field in Assam, which it operates with Assam Company, a local tea planter turned oil explorer. But before Canoro invests money in Changpang, the Nagaland state government must first sign a Memorandum of Understanding (MoU) guaranteeing original leaseholder ONGC access to the field and security for its personnel when dealing with local landowners and militants.

This is likely to happen soon. On September 15, Nagaland chief minister Neiphieu Rio set up a panel of five state lawmakers with a clear mandate to have a draft MoU ready by November 15.

Once in place, the service contract between ONGC and Canoro signed in September last year will kick-in. Under this contract, Canoro can access all 29 wells drilled by ONGC from 1971 to 1994, any 3D shot by ONGC and other data.

Canoro estimates Changpang holds between 7m and 8m barrels of 36-degree API recoverable oil, with no sulphur and believes daily production could reach up to 3000 b/d, much higher than the 1400 b/d ONGC recorded in 1994 before it was expelled. "œWe have done engineering studies (for Changpang),"‌ Canoro tells us.

"œWe have well heads and tubing in our inventory at Jorhat. Also we need to install production equipment and hire a workover rig to replace tubing, "کacidise"™ and re-perforate the wells."‌ Canoro is also likely to shoot new 3D at Changpang ahead of any new wells but its first priority will be to restore "کamicable"™ relations with local landowners and separatist militants that ONGC could never quite get along with.

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