Rick Wilkinson
OGJ Correspondent
MELBOURNE, Mar. 28 -- India has approved the participation of Oilex NL, Perth, in a production-sharing contract for Cambay oil and gas field on the country's northwest coast.
Oilex will become operator and earn 30% working interest from Gujarat State Petroleum Corp. (GSPC) and Niko Resources Ltd. by undertaking the appraisal and development program (OGJ Online, July 27, 2005).
A forerunner of state-owned Oil & Natural Gas Corp. discovered and developed Cambay in 1957-58. The original development comprised a total of 62 wells to tap oil and gas from Tertiary-age reservoirs (Oligocene and Miocene gas sands plus a deeper Oligocene oil sand).
By 1991, sand and water influx had greatly reduced flow rates, and the field was virtually shut in.
The GSPC-Niko joint venture acquired the field in 1995 and continued to produce gas and oil and low rates.
Oilex has undertaken a detailed study of well data in preparation for a redevelopment program that will be presented to the venture next month. Oilex estimates that just over 50% of the field's initial reserves remain in the reservoirs.
