Australian Oilex Reaches Agreement to Drill Gas Well in India

Australia listed Oilex has signed an agreement with its joint venture partner in India, Gujarat State Petroleum Corp (GSPC), on the next planned vertical well, C-87, in the Cambay field in the western Indian state of Gujarat.

“The signing of the agreement is a key milestone towards the proposed drilling of well C-78, unlocking value and possibly securing an extension to the Cambay field production sharing contract term,” Oilex said October 17.

Under the agreement, Oilex will drill, test, complete, commission and, subject to successful operations, begin commercial production from the proposed well. The Australian company will fund the well and can sell all its output from it. GSPC has the option to back in to it within 365 days from the start of commercial production, Oilex said. 

Oilex India map (Credit: Oilex)

According to Oilex, successful execution of well C-78 is required to progress towards the potential development of the unconventional gas opportunity at the Cambay field. The drilling of the well is also essential for the company to prepare and submit a field development plan to the Government of India by September 2017 to obtain an extension to the PSC term. The current PSC term expires on 23 September 23, 2019.

Shardul Sharma