HOEC has announced the successful drilling, completion and testing of its second sub-sea well through a jack-up rig, named well D-1 located in Mumbai Offshore.
D-1 produced significantly more oil during the flow test, compared to first well D-2 test results announced as on February 24, 2020.
The two wells drilled and completed in the Block B-80 have surpassed their expectation and the average production of oil and gas in oil equivalent terms should exceed 8,000 barrels per day.
Successful execution of this drilling campaign, with both wells completed by Sub-sea well head & tree, installed through a Jack-up Rig, is a feat first time achieved in India by a private oil and gas producer. This adds a significant muscle to the capability of HOEC in offshore marginal field development.
Safe completion of second well, despite severe challenges posed by the lockdown, was possible due to the prompt support received from Directorate General of Hydrocarbons, Ministry of Petroleum & Natural Gas, Government of India, Mumbai Police, Mumbai Port Authorities, State Government of Maharashtra, with excellent cooperation received from all our Oil Field Services Contractors and the determination of Team HOEC.
B-80 is a pioneering project for measuring the success of the Discovered Small Fields (DSF) policy initiative taken by the Government of India, to enhance the domestic oil and gas production. Volumes tested by HOEC through both wells demonstrate commerciality of offshore production from a DSF block.
P Elango, Managing Director, HOEC said, “Having secured the two subsea wells ready to flow, our next task is to optimize the total cost of evacuation of oil and to reduce the Break-Even Price (BEP) further down from our earlier guided level of $35/Barrel with appropriate return to the investment. Industry has sought a series of fiscal relief from the Government of India to protect the domestic upstream oil and gas Sector.
"We plan to leverage the low price environment in the Oil Field Services Sector to bring down the overall costs. We are determined to continue the momentum and complete the project to deliver the First Oil and Gas from both the wells as and when the current situation improves," added Elango.
Block MB/OSDSF/B80/2016 is spread over 56 Square Km area in Western Offshore and was awarded under the First Discovered Small Field Bid Round 2016 on March 27, 2017. HOEC is the Operator of this field with 50% Participating Interest.
