HOEC Moving Forward with Development Plans

The Management Committee of the Block CB-ON/7 (Onshore Cambay) has approved the Plan of Development for Pramoda oil discovery. Hindustan Oil Exploration Company made a declaration of commerciality of the discovery in September 2004.

The Development activities comprises of drilling development well and setting up production facilities to put existing wells and new well on production.

Oil & Natural Gas Corporation Ltd. (ONGC) has exercised its back in rights of 30% in the development of the said discovery.

HOEC is the Operator with 35% interest and other partners being ONGC (30%) and Gujarat State Petroleum Corporation Ltd.(GSPCL) (35%).

Development activities have been commenced in full swing to bring this field on production in the current financial year.

In other news, the Directorate General of Hydrocarbons (DGH) has approved the Revised Plan of Development (rPOD) submitted by HOEC on behalf of the PY-1 Contractor. It may be noted that HOEC has submitted the rPOD to DGH for a minimum development case in November 2004. The rPOD envisages drilling and completing 3 long horizontal wells, setting up an offshore platform with minimal gas processing facilities, around 55 kilometers of subsea pipeline from offshore facilities to landfall point and an onshore gas processing terminal by the PY-1 Contractor. The initial plateau production rate has been considered at 45 million standard cubic feet of gas per day (MMSCFD) with the target first gas commencement date being October 1, 2006.