HOEC commence oil production and gas sales from its wells

09 Jun 2022 CW Team

Hindustan Oil Exploration Company (HOEC) told the media that D-1 and D-2 wells had been individually brought online for production after successfully addressing the technical issues faced during pre-commissioning operations.

Gas sales to Gujarat State Petroleum Corporation Limited (GSPC) commenced from Oil and Natural Gas Corporation Limited (ONGC) Gas Processing Terminal at Hazira.

Before the commencement of sales, gas production from D-2 was processed to meet the specifications and packed into the ONGC pipeline from 31 May. The Gas Transportation Agreement (GTA) between ONGC and HOEC was executed this year on 3 June.

The D-1 well on production flows at lower rates for safe stabilisation of all operational parameters. The produced oil is then transferred through the pipeline to a HOEC's Floating Storage Offloading vessel (FSO). FSO can store it for over six months of production.

The processed gas is exported through the ONGC pipeline network to its Hazira Gas Processing Terminal. ONGC then redelivers B-80 gas into the flagship Hazira-Vijaipur-Jagdishpur (HVJ) pipeline owned by the Gas Authority of India Limited (GAIL). GSPC offtakes the B-80 gas to deliver to the end consumers via its pipeline network.

The company expects to stabilise the entire production and sales operations in the next few weeks.

Its block MB/OSDSF/B80/2016 covers 56 sq km area in Western Offshore and was awarded under the First Discovered Small Field (DSF) in the Bid Round 2016.

HOEC is the operator of this oil field with 60% participating interest, and 40 % is owned by Adbhoot Estates. Under the Revenue Sharing Contract (RSC), the oil and gas produced from the block relish marketing and pricing freedom.

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Also read: ONGC commissions two Rs 6,000 cr project to boost oil output

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