More activity expected at PY-1 gasfield

Vol 14, PW 13 (16 Dec 10) Exploration & Production

Expect renewed activity at PY-1 offshore Tamil Nadu where BSE-listed Hindustan Oil Exploration Company is operator with 100%.

PETROWATCH learns HOEC is preparing in-house reservoir simulation and enhanced production forecast studies for submission to the DGH by the end of the year. HOEC has already begun scouting for a rig and associated drilling services and on October 15 issued an invitation for Expressions of Interest (EoI) for two new development wells and the workover of two existing wells at PY-1.

But first it needs DGH approval to proceed with Phase-II drilling. “Any (rig) award will be made only after the DGH approves (the studies),” we hear.

Assuming this comes in good time, drilling at the 75-sq km PY-1 gasfield, which sits in 76 metres water depth, around 30-km off the Pondicherry coast, could begin by April or May next year. At PY-1 the potential exists for nine wells from its nine-slot production platform, designed to handle 2.9m cm/d production.

So far HOEC has drilled four directional wells of up to 3000 metres depth to the sub-basement Eocene limestone and Clastic reservoir at PY-1. “But most production is from only two of three wells,” we hear.

Commercial gas first flowed on November 27 last year, and current production stands at 1.18m cm/d - all supplied through GAIL to sole buyer PPN Power and its 330-MW power plant. PY-1 comes to shore through a 14-inch 56-km subsea pipeline to an onshore gas processing plant at the Thirukadaiyur landfall point near Karaikal in the Nagapattinam district of Tamil Nadu.

From there it is sold to GAIL at $3.75/mmbtu for onward delivery to PPN. Can PY-1 produce more “There is upside,” we hear.

“But it’s too early to say how much.” Conservative estimates suggest PY-1 holds 200bn cubic feet recoverable gas.

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