The world’s fifth largest energy consumer with a significant unsatisfied gas demand, associated high sustainable gas prices. As such, spare capacity in readily accessible infrastructure and good fiscal terms means that India’s energy demand remains robust.
Since 2005 Oilex has worked closely with local partners and Government to build an operating presence in the region.
Located in the prolific Cambay Basin, the Cambay Asset is the most significant component of the Company’s portfolio, covering 161 km² (~40,000 acres) in Gujarat State, the industrial heartland of India.
This field is located near to the Lakshmi, Gauri and Hazira Fields that are producing oil and gas from reservoir intervals similar to those intersected in the Bhandut wells. The field was discovered and developed initially by ONGC of India. Hydrocarbons were found in Oligocene and Eocene sandstones and continued to be produced on an intermittent basis after the fields were acquired by the GSPC and Niko Joint Venture in 1995.
Energy Prices in India
In 2013, the Government of India announced a change in domestic gas pricing policy which will lead to domestically produced gas prices reaching US$8/MMBtu. This was done to encourage investment in domestic production to help offset LNG imports.