Canadian company Canoro Resources, involved in a legal dispute with the Union petroleum ministry for cancellation of its production sharing contract (PSC), has stopped production from its Assam oilfield, claiming an excess of water to oil ratio.
The Amguri field in Assam produces about 1,000 barrels of oil equivalent per day (boe). According to Sproule, an internationally recognised body engaged in making resource/reserve assessments, the reserve of oil condensate and gas at Amguri stood at 12.287 million Boe.
The company recently informed the ministry about stoppage of production, said a person familiar with the development. When asked, an official at Canoro’s office here refused to comment.
The pre-Nelp block, abandoned once by Oil and Natural Gas Corporation, is held jointly by Kolkata-based Assam Company India Ltd (ACIL) and Canada-based Canoro Resources Ltd. Canoro holds 60 per cent operating stake in the block and the rest is held by ACIL.
