Directorate General of Hydrocarbons (DGH) has approved field development plan for what could be 23 million barrels of recoverable oil in a field. In an interview to CNBC-TV18, Shalabh Mittal, MD & CEO of Mercator spoke at length about the same.
Mittal said that this is an exciting development for the company. We have invested last few years on developing this oil well.
He further said that the DGH has formally approved the field development plan which means that they have approved the way we are going to develop the field, the production planning and so on.
Trial production targeted to begin in March 2018, he added.
Mittal mentioned that oil field is much larger. We are talking about only two wells here, Jyoti-1 and Jyoti-2.
“Trial production is small level of production but whatever we produce would be sold as well. There would be revenues for that but of course at a small level,” said Mittal.
Talking about revenue potential, he said there is a revenue sharing as per the production plan and government gets about 70 percent of what it is sold at.
For entire interview, watch accompanying video.