Oil India to invest 57bn on 167 wells in Assam

23 March 2020

Hydrocarbon producer Oil India Ltd plans to invest around 57bn rupees on drilling 167 wells and constructing additional production facilities and a pipeline in Assam's Dibrugarh district, a senior official said. 

The location of the project is Dibrugarh district's Tengakhat-Kathaloni-Dikom area, where the state-owned company already produces crude oil and gas. The project, which will cover seven petroleum mining leases in the area, will involve drilling 31 exploratory wells and 136 development wells, apart from construction of seven production installations and laying an interconnecting pipeline, said the official, on condition of anonymity.

The project is primarily aimed at increasing oil and gas production from the Tengakhat-Kathaloni-Dikom area. Over the years, Oil India has drilled around 150 development wells in the area. With this project, the company aims to increase oil production from the area by 0.5 mtpa.

Unlike exploratory wells, which are drilled to explore an area for hydrocarbon reserves, development wells are drilled to exploit known hydrocarbon reserves. Usually, if development drilling is successful, the wells are converted into production wells for commercial production of hydrocarbons.

The proposed development drilling project is awaiting some government clearances and Oil India intends to start work on it as soon as it receives the necessary approvals, which could take a few months. The project is part of the government's push to increase domestic oil and gas production.

In this project, the development wells are planned to be drilled at depths of around 3,900 mtr and the project, including the construction of production facilities and laying the pipeline, is expected to be completed in seven years.