India: Dholka and Wavel Fields
In 1995 JTI entered into a production sharing agreement with the Government of India (GOI) to develop the Dholka and Wavel fields in Gujarat, India. Since that time, JTI has increased production in the Dholka Field by over 50%. Through onsite improvements and analysis of the field's proven reserves, JTI believes there is a tremendous upside potential in increasing both oil and gas production.
The Dholka and Wavel fields are located in the state of Gujarat in India, about 320 miles north of Mumbai, and 38 miles from Ahmedabad, a major city in Gujarat, India. The Dholka field has numerous hydrocarbon zones including conventional sandstone-siltstone reservoirs and newly discovered shale reservoirs. The Wavel field also has numerous hydrocarbon zones.
As of Dec 2018, Dholka Field produces about 860 Barrels of Oil Equivalent per day (BOE/D) including 790 barrels of oil per day and 1.0 Millions of cubic feet of Gas per day (equivalent to 70 BOE per day). The Wavel Field produces about 60 Barrels of Oil per day.
JTI's total current production from the oilfields in India (from Dholka and Wavel oilfields) is about 920 barrels of oil equivalent per day (BOE/D). The oil produced is 40 API gravity.
The Dholka field has been in production since 1970. In October of 1995 JTI (50%), with Larson & Toubro (50%), entered into a production sharing agreement with the Government of India (GOI) to develop the Dholka field. When the consortium took over the field in 1995, the field had 14 producing wells and the oil production was 250 barrels of oil per day. On March 31, 2004, JTI acquired 100% interest in the Dholka field.
As of Dec 2018, there are 38 producing wells in the Dholka field and the total oil production from the Dholka Field is about 790 barrels of oil per day.
At present, JTI sells about 28,000 Std. Cubic Meters (SCM) of gas daily [1000 MSCF/day], which is used by local industries. Daily gas sales are approximately 70 barrels of oil equivalent per day. Thus, as of Dec 2018, the total production from Dholka Field is about 860 barrels of oil equivalent per day.
JTI owns a work-over rig which is currently being used to maintain and improve production in the Dholka & Wavel fields. Since second quarter of 2015, JTI has successfully maintained production from both the fields by doing minor work-over jobs in the existing wells using the work-over rig.
During 1st half of 2018, JTI drilled 3 new wells in Dholka field. Production from all the three new wells has been stabilized.
JTI started oil production from the Wavel field in January 2004. As of Dec 2018, these two wells produce 60 barrels of oil per day. As of Dec 2018, one of the two producing wells was under work-over. We expect the well to put back on production in January 2019 and regain the production.
India Total Production Update, Dec 2018
As of Dec 2018, the average daily oil production from both the Dholka and Wavel fields is about 850 barrels of oil per day. JTI currently sells about 28,000 cubic meters of gas per day equivalent to 70 barrels of oil per day. The total daily oil equivalent is about 920 BOE per day.