Oilex executes Indian contract

OILEX has executed an agreement with the Indian Cambay Field joint venture to acquire a 30 per cent interest in the production sharing contract covering the field.The Cambay Field joint venture, comprising Gujarat State Petroleum Corporation (GSPC) and Niko Resources, is located in onshore Gujarat State, in western India. Locally-based Oilex will become the operator and will earn its interest by undertaking an exploration and development work program of a value equal to 30 per cent of the costs incurred by GSPC and Niko to date. A formal farm-in agreement and deed of assignment is being completed for execution by the joint venture parties and for approval by the Indian Ministry of Petroleum & Natural Gas, Oilex said. Oilex said it sees the acquisition as the first important step in establishing its presence as an operator in oil and gas exploration and production contracts in the Indian Subcontinent.The objective of the acquisition is to develop a production base in India at the earliest opportunity, the company said.