Guwahati: The Hindustan Oil Exploration Company (HOEC) has planned to drill 18 wells in Arunachal Pradesh to quadruple oil production from the Kharsang field in the Changlang district of the Northeastern state.
HOEC has targeted to drill 18 wells in the Kharsang field of Arunachal Pradesh, which is around 100 km from its gas-producing plant at Dirak in eastern Assam’s Tinsukia district, businessline reported.
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According to the field development plan approved by the Directorate General of Hydrocarbons, the Kharsang Phase-I programme will quadruple the company’s oil output to 1,800 barrels a day, in three years.
Each well would cost about $1.5 million to $2 million, Pandarinathan Elango, Managing Director of HOEC old businessline.
To start work in the field, HOEC has to get the production sharing contract (PSC) with the government extended by 10 years.
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In the Kharsang field, HOEC has a 30 per cent participating interest—25 per cent directly and 5 per cent by virtue of its holding half the equity of Geopetrol International, which has 10 per cent stake in the field.
A company called JIKPL, part of the Inverine Energy group has 25 per cent and the other 40 per cent of Kharsang is held by Oil India Ltd.
In the second Phase, HOEC would drill deeper into the field to look for gas deposits, Elango said.