Due to the higher than anticipated C-77H re-frac costs caused by a global shortage of fraccing services and equipment, and the delayed start-up of gas production on the Cambay field, Oilex plans to raise additional funds over the next approximate month.
In addition, Oilex have negotiated a revised Gas Sales Agreement with Enertech Fuel Solutions Private Limited for the sale of gas from the Cambay field. The revised agreement is based on the recently announced Government of India Domestic Gas Price of US$6.1/mmBTU plus an additional 20% premium. The revised gas price is now US$7.32/mmBTU compared to the previous gas price of c. US$4.2/mmBTU.
Oilex’s CEO, Roland Wessel, said: “Following a competitive tendering process, the Company has selected Schlumberger to provide the bulk of the services required for the upcoming C-77H re-frac operation. We are pleased to have secured the equipment and services for the important C-77H re-frac operation given the worldwide shortage of fraccing services. The amended Gas Sales Agreement is consistent with the recent Government of India revised Domestic Gas Price announcement.”
Read the latest issue of Oilfield Technology in full for free: Spring 2022
Oilfield Technology’s first issue of 2022 begins with analysis from Wood Mackenzie on the disconnect between surging oil prices and US oil production growth and investment. The rest of the issue is dedicated to features covering sand removal technology, dissolvable frac plug technology, digitalisation of offshore operations, annular intervention, oilfield chemicals, subsea compression systems and smart instrument measurement.
Exclusive contributions come from TETRA Technologies, NOV, Archer, Expro, Locus Bio-Energy Solutions, AES Drilling Fluids, MAN Energy Solutions and Winters Instruments.
Read the article online at: https://www.oilfieldtechnology.com/hydraulic-fracturing/14042022/schlumberger-awarded-fracking-contract-in-india/