Oilex is to perform workovers on two wells at the Cambay Production Sharing Contract in Gujarat, India
The workovers are designed to test production flow rate potential from the OS-II reservoir in areas that the company anticipates to have remained unswept by earlier production.
Oilex say a rig has now been mobilised to the area ahead of intervention work getting underway next month.
The firm said expectations are for “modest flow rates”.
However, the company added, a successful outcome will provide support for a field development plan in regard to extending the term of the PSC to 2029 or the economic life of the field, whichever is earlier.
The well has an established pipeline connection in place to the existing Cambay processing facility. A number of options to sell gas from the workovers are currently being evaluated.
As agreed with GSPC, the Joint Venture partner, Oilex is to fully fund the workover expenditure and receive all revenue until these costs are recovered.
Once costs are recovered, Oilex and GSPC will revert to their participating interests of revenue and expenditure.
Joe Salomon, Oilex managing director, said: “There are twin objectives for the workovers; to deliver revenue from production whilst also supporting our application to extend the term of the Cambay PSC.
“While we expect to see relatively modest flow rates from the workovers, the produced gas effectively leverages our existing infrastructure.”
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