Oilex and Schlumberger have executed a Letter of Intent (LOI) for the Schlumberger supply of hydraulic fracturing services, coiled tubing and nitrogen services and perforation services for the planned re-frac of the Cambay C-77H well in Gujarat, India, in July 2022.
Due to the higher than anticipated C-77H re-frac costs caused by a global shortage of fracking services and equipment, and the delayed start-up of gas production on the Cambay field, Oilex plans to raise additional funds over the next approximate month.
In addition, Oilex have negotiated a revised Gas Sales Agreement with Enertech Fuel Solutions Private Limited for the sale of gas from the Cambay field.
The revised agreement is based on the recently announced Government of India Domestic Gas Price of US$6.1/mmBTU plus an additional 20 percent premium. The revised gas price is now US$7.32/mmBTU compared to the previous gas price of c. US$4.2/mmBTU.
Oilex’s CEO, Roland Wessel, said: “Following a competitive tendering process, the company has selected Schlumberger to provide the bulk of the services required for the upcoming C-77H re-frac operation. We are pleased to have secured the equipment and services for the important C-77H re-frac operation given the worldwide shortage of fracking services.
“The amended Gas Sales Agreement is consistent with the recent Government of India revised Domestic Gas Price announcement.”
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