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AUG 31 2017

IOCs first domestic exploration asset commences production in Assam

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 31st AUG 2017

 

Indian Oil Corporation (IOC), the country’s largest fuel retailer, announced it has commenced production of gas and condensate from its Pre-New Exploration Licensing Policy (NELP) Dirok field in Assam this month, marking its first domestic exploration asset maturing from exploration stage to become a producing asset.

“The initial production from the field, termed Phase-I, is estimated at approximately10 Million Cubic Feet Per Day (MMSCFD) of gas and 120-140 Barrels of Oil Per Day (BOPD) of condensate from three wells namely Dirok-1, 2 and 4. The present production of gas and condensate is being flowed through a 4 inch and 20 km pipeline from the Gas Gathering Station (GGS) located at Dirok-4 well site to Oil India Limited's processing facility at Kusijan (4 km from Digboi),” IOC said in an update on its website.

The government had in May 2015 approved the $82 million field development plan (FDP) for Dirok. The FDP envisaged re-entry and completion of three existing wells and drilling of an additional well along with a 25-km pipeline and a gas processing plant.

IOC holds 29.03 per cent participating interest in the block located near Digboi in Assam along with operator Hindustan Oil Exploration Company’s 26.88 per cent and Licensee Oil India Limited’s 44.08 per cent stake.

“Under Phase-I, Dirok Gas is being sold to Oil India at government regulated price, revised every six months, which currently is $2.48 per One Million British Thermal Units (MMBTU) while IOC is the buyer of the condensate at a price equivalent to that of bench-marked crude oil,” the company said.

HOEC Chief Executive P Elango told media on Monday the gas field has a production profile of 15 years and the added facilities being developed will lead to doubling the production estimated in FDP. "We are building facilities that can deliver 36 million standard cubic feet of gas and over 1,000 barrels of condensate per day, nearly doubling our initial estimated volume of 20 MMSCFD stated in the approved FDP," Elango said.

According to IOC the consortium has initiated an extensive market survey and analysis to understand the affordability, demand and supply apart from infrastructure availability to establish arms-length pricing for Dirok Gas under Phase-II. Condensate will, however, be sold to IOC and delivered to its Digboi Refinery.

With addition of Dirok production, IOC now holds a portfolio of six producing assets, including five overseas and one domestic, out of 17 active Exploration and Production (E&P) assets.

Tags

Assam Gas New Exploration Licensing Policy Oil Refinery Gas Field New Exploration Licensing Policy Crude Oil India

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