InvestorQ : Do you see the price of Oil India being positively impacted by the recent gas discovery in Assam?
shrinidhi Rajan made post

Do you see the price of Oil India being positively impacted by the recent gas discovery in Assam?

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8 months ago
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Oil India, which is India’s second largest oil & gas extractor after ONGC, announced that it had just made a major natural gas discovery at a well in the Tinsukia province of Assam. That region is known to be an extremely oil rich region.

The discovery is also critical from a macro standpoint as it will open up new areas for further oil and gas exploration in Assam as well as in the adjoining areas. It will also help to enhance gas production which is expected to gradually move up in the fuel mix.

According to Oil India, this discovery was made in Well Dinjan-1 in Tinsukia in the petroleum mining lease or PML area located in the upper Assam basin region, which is considered to be fairly rich in hydrocarbon reserves. It encountered about 10 meters of hydrocarbon-bearing sands which produced gas at the rate of 115,000 standard cubic meters on a daily basis.

OIL is predominantly based out of the North East but it did not disclose in detail about the indicative reserves that the discovery may hold. The big challenge for such discoveries remains the gas prices. After the latest cut in gas prices, most of the gas finds are looking increasingly non-lucrative.

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