NEW DELHI – Hydrocarbon producer Oil India Ltd plans to spend around 8.5 bln rupees on drilling 21 development wells, constructing a production facility, and laying a pipeline in its Dibrugarh Bhogpara block in Assam, a senior official of the state-owned company told Cogencis.
The block is located in Assam’s Dibrugarh district and falls under the Dibrugarh, Chabua, Hugrijan, and Tinsukia petroleum mining leases.
The area is a part of greater Tengakhat area of Oil India’s operational area of upper Assam and includes established oil and gas bearing structures. This project is part of Oil India’s larger plan of enhancing hydrocarbon production from 10 blocks in the region, said the official, on condition of anonymity.
The project is expected to increase production from the area by 500,000 ltr a day of crude oil and 50 mscmd of natural gas, the official added.
The proposed development drilling project is awaiting some government clearances and Oil India intends to start work on it as soon as it receives the necessary approvals, which could take a few months. The project is part of the government’s push to increase domestic oil and gas production.
In this project, the development wells are planned to be drilled at depths of around 3,900 mtr and the estimated duration of drilling is three to four months per well. The entire project, including construction of production facilities and laying the pipeline, is expected to be completed in seven years.
Unlike exploratory wells, which are drilled to explore an area for hydrocarbon reserves, development wells are drilled to exploit known hydrocarbon reserves. Usually, if development drilling is successful, the wells are converted into production wells for commercial production of hydrocarbons.
Exploratory drilling in the Dibrugarh Bhogpara block started about 22 years ago, followed by development drilling that led to a number to oil producing wells in the block.
At 1349 IST, shares of Oil India were 85.65 rupees on the National Stock Exchange, 7.8% higher from the previous close.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Source: Cogencis
Image Courtesy:Chemical industry digest
You may also like
-
Trade Connect E-platform For Exports Is Single Window, Fast, Accessible And Transformational: Shri Piyush Goyal
-
Dot Simplifies Approval Processes For Telecom Licenses And Wireless Equipment
-
Coal Production and Supply Trends on Positive Trajectory
-
Union Minister To Release Booklets On Promotion Of Indigenous Species & Conservation Of States Fishes
-
2nd India-Japan Finance Dialogue held in Tokyo on 6th September, 2024
