Hindustan Oil Exploration Co Ltd (HOEC) has started commercial sale of natural gas from its Assam fields, where production is planned to nearly double by this fiscal, its CEO P Elango said today.
HOEC has started selling 10 million standard cubic feet per day of gas from the Dirok field in Tinsukia district of Assam to Brahmaputra Cracker and Polymer Ltd, he told.
"The price realised is government mandated USD 2.48 per million British thermal unit," he said.
The government, in May 2015, had approved a USD 82 million field development plan (FDP) for Dirok. The FDP envisaged re-entry and completion of three existing wells and drilling of one more well, along with a 25-km pipeline and a gas processing plant.
However, the rest of the new wells drilled were encouraging and the company got approval for drilling two additional wells.
"The FDP envisaged a peak production of 20 mmscfd, but with the six wells we plan to hit 36 mmscfd, which is equivalent to 1 million standard cubic metre per day, by the end of the current fiscal," he said.
Production from Dirok will be over 12 per cent of total gas production in Assam. About 8 mmscmd of gas is produced in Assam currently.
"The field gas has a production profile of 15 years," he said.
Dirok field has been developed in a record 27 months by the joint venture consisting of Oil India, Indian Oil Corporation and HOEC.
HOEC is the operator with 28 per cent stake.
"The initial production to be about 10 mmscfd is restricted by the capacity of the pipeline (carrying gas to the OIL facility) and will be ramped up to full capacity over the next six months with the commissioning of Modular Gas Processing Plant (MGPP)," he said.
Oil India buys the gas at the price fixed by the government while IOC will buy 1,000 barrels per day of condensate to be produced from the field.
"We are building facilities that can deliver 36 million standard cubic feet of gas and over 1,000 barrels of condensate per day, nearly doubling our initial estimated volume of 20 mmscfd stated in the approved Field Development Plan (FDP)," he said.