HOEC reported significantly more oil during flow test at D-1 well compared to first well D-2 that was concluded recently
Hindustan Oil Exploration Company (HOEC) has completed drilling and testing of its second subsea well, named well D-1, in Block MB/OSDSF/B80/2016 located offshore Mumbai, India.
During the flow test, D-1 well has produced significantly more oil compared to first well D-2, which recently completed testing.
The firm said that the drilling and completion of the two wells in the block B-80 have surpassed its expectation and anticipates the average production of oil and gas in oil equivalent terms to exceed 8,000 barrels per day.
HOEC makes new discovery in Deccan Trap formation at D1 well
During drilling at the D1 well, HOEC encountered discovery in Deccan Trap formation of a 6m interval that has the potential to produce oil and gas, which is subject to testing. HOEC is planning to further appraise the discovery in the next well drilling.
HOEC managing director Elango 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 series of fiscal relief from Government of India to protect the domestic Upstream Oil and Gas Sector.
“Our endeavor is to appraise the new discovery in deccan trap formation to increase the value of the block potential in the subsequent drilling program.
“Overall, our plan is to remain focused on what we can control, which are costs and volumes, and make each of our Operating Assets profitable through our proven low cost and fast track operating model in this volatile price and uncertain environment.”
Spread over 56km2 area in Western Offshore, the Block MB/OSDSF/B80/2016 was awarded to HOEC under the first discovered small field bid round 2016 in March 2017. HOEC operates the field with 50% Participating Interest.