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India and Canada sign oil sharing pact

02nd April 2012

Canadian oil company partners with India’s oil and gas ministry

Canandian company granted access to Indian oil reserves

Canadian energy company, East West Petroleum Corporation has signed an oil production sharing contract (PSC) with India’s directorate general of hydrocarbons.

 

The contract involves exploration of two wells in a block (AA-ONN-2010/2) in the Assam-Arakan Basin oil producing region in northeast India.

 

More than 100 fields have been found in the area with current production estimated at 95,000 boepd.

Under the terms of the agreement, the partnership will acquire 395 KM2 of 3D seismic data and two wells at an estimated cost of USD 2.8m.

 

The 3D data will cover the entire block, which is considered to be oil-prone, and be used to high-grade structural leads already identified on 2D data, in preparation for drilling.

 

Partners in the NELP IX bid round block include Oil India, operator with a 40 per cent stake, Oil and Natural Gas Corporation of India with 30 per cent, and Gas Authority of India with 20 per cent and East West Petroleum with 10 per cent.

 

The Indian government last week gave the green light to exploration in 16 of its oil and gas blocks and rejected bids for 14. Almost half of the blocks available were awarded to state-run companies.

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