Oilex to restart gas production in India
Australia's Oilex on April 4 said it will restart gas production at Cambay field in the Indian state of Gujarat.
The company has been informed by the Gujarat Pollution Control Board (GPCB) that it has confirmed the revocation of the production halt concerning Oilex’s Cambay field and have authorised the use of the early gas production facility on the Cambay C-73 wellsite. GPCB's personnel will visit the C-73 wellsite to remove the production flange seal in the coming days.
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"Subject to the early removal of the production flange seal by GPCB personnel, production will re-commence immediately thereafter. The resumption of gas production and re-establishment of cash flow is an important milestone for Oilex's Indian operations, and we look forward to contributing to India's indigenous gas supplies,” Oilex CEO Roland Wessel said.
The government of India has approved the transfer of assignment of the 55% participating interest in the Cambay field held by state-run Gujarat State Petroleum Corporation (GSPC) to Oilex.
Sydney-listed Oilex had been in dispute with GSPC over ownership. In April last year, the two parties settled the matter and in June Oilex executed a binding agreement to acquire GSPC’s 55% interest in the Cambay field, providing the company with a 100% working interest in the Cambay concession. The company in December received the final court order regarding the dispute.