Oilex starts gas production from India’s Bhandut field

PERTH, Australia -- Oilex Ltd has commenced gas production from Bhandut field, onshore Gujarat, India. The Bhandut-3 well is currently flowing at the expected stabilized rate of 0.70 MMscfgd (120 boed) through an 8/64 in. choke, the company said.

Gas produced from Bhandut-3 is initially processed at the on-site production facilities and then delivered to a third-party operated gas processing plant where it is further treated to the required pipeline specification. It is subsequently compressed for entry into the high pressure gas network for delivery to an end user.

Oilex is the operator and holds a 40% equity stake in Bhandut field, with Gujarat State Petroleum Corporation (GSPC) holding the remaining equity interest.

Previous drilling in the Bhandut wells intersected a number of hydrocarbon zones, some of which have been produced and are now shut in. The Bhandut-3 well is producing from a previously undeveloped sandstone at a depth of 1,010 m at virgin reservoir pressure. This zone was flow tested by Oilex and the joint venture in 2013 confirming good reservoir quality with an average permeability of 124 mD and gas of good quality containing 98.9% hydrocarbons, of which 94% is methane and 1.1% nitrogen and carbon dioxide.

As this is the first production from this individual reservoir, the production will be closely monitored to facilitate a greater understanding of its potential. Currently, the joint venture has approval to sell hydrocarbons from this project for 3 months pending completion and approval of a field development plan.