Oilex is the operator responsible for all operations, including production, in the Cambay block. Operations personnel are based out of new offices in Vadodara, which is near to the Cambay Field.
As a consequence of the transfer of operatorship for Cambay Field and the pending transfer of operatorship for Bhandut and Sabarmati Fields, six former employees of Niko, and the contract field maintenance and security staff have joined Oilex, the company said in a statement.
The total complement of employees of the company in India is now 12, led by Rich Paces, country manager and chief operating officer based in New Delhi and Tony Beckett, general manager - operations based in Vadodara.
Earlier this year, Oilex acquired a 45 per cent participating interest and the role of Operator in the Cambay production sharing contract, 15 per cent of which remains subject to the approval of the government of India.
Oilex will also become operator of the Sabarmati and Bhandut fields when the approval of the government is received.
Current operations on Cambay include completing the planning for the drilling programme and construction of the three well sites for the first phase of drilling, now likely to commence in late June.
The ministry of petroleum and natural gas approved the assignment of 30 per cent equity in Cambay Field to Oilex on March 23, 2006. The amendment to the production sharing contract is now being finalised.
Subsequent to end of quarter, Oilex increased its stake in Cambay Field to 45 per cent as part of a transaction involving two other small fields.
Oilex is the nominated Operator for the joint venture and presented a revision of the current year work programme and budget to the JV on April 12.
The programme is subject to management committee approval and consists of two phases that are fundamentally separated for logistic reasons due to the monsoon season between mid-June and October. In the first phase, 2 firm and 1 contingent well are planned to be drilled on monsoon pads starting early June.
Concurrently, Oilex is investigating the possibility of acquiring a 3D seismic survey over the western part of the block to commence late May and to be completed during a 15-20 day gap before the monsoon. The second part of the survey will be acquired over the eastern half of the block after the monsoon.
Oilex has now 45 per cent interest in the Cambay Field and 40 per cent in each of Bhandut and Sabarmati fields, subject to the approval of the Government of India.
Each of these fields is producing oil at low rates on an intermittent basis and they are anticipated to be good candidates for re-development.
In all of these joint ventures, Oilex is the Operator and its co-venture party is Gujarat State Petroleum Corporation.
Oilex has received all approvals necessary for the initial farmin on GSPC and Niko for 30 per cent equity in Cambay Field, subject to formal amendment of the Production Sharing Contract.
Cambay, Bhandut and Sabarmati fields are located in one of the most prolific petroleum provinces onshore India close to existing pipeline and industrial infrastructure and with the purchase from Niko of the additional 15 per cent equity in Cambay and the 40 per cent participating interest in the Bhandut and Sabarmati PSC's, Oilex is well placed to develop a production base in Gujarat at the earliest opportunity.
Oilex will become the Operator under the existing PSC and Joint Operating Agreement and in consideration of the assignment by Niko of its interests and adjustment for Niko's share of the original farmin, Oilex will pay an amount of $5.49 million that is due for payment when approval for the transaction by the Government of India is received.
