Oilex Signs Sale Agreement for Cambay Gas

Oilex and its joint venture partner Gujarat State Petroleum Corporation (GSPC) have signed a sales agreement for the gas produced from the Cambay-73 well in the Cambay Basin, India.

The agreement covers gas sales for two years on a best endeavours basis, and has been submitted to the Gujarat State Government bodies (Directorate of Petroleum & GSPC) and the Government of India (Ministry of Petroleum and Natural Gas) for endorsement, Oilex said in a statement. It did not disclose the contract price.

Production from Cambay-73 is expected to commence within two months of all Government approvals and gas sales will commence immediately thereafter, Oilex said. The initial gas volumes may be approximately 200 Mscf per day.