Schlumberger Asia Services Ltd. and Oilex Ltd. executed a letter of intent for the supply by Schlumberger of hydraulic fracturing services, coiled tubing and nitrogen services and perforation services for the planned re-frac of the Cambay C-77H well in India in July 2022, a press release on April 14 stated.

“We are pleased to have secured the equipment and services for the important C-77H re-frac operation given the worldwide shortage of fracking services," Oilex CEO Roland Wessel commented in the release.

Oilex plans to raise additional funds for the project over the next approximate month due to the higher-than-anticipated C-77H re-frac costs caused by a global shortage of fracking services and equipment and the delayed start up of gas production on the Cambay field.

In addition, Oilex has negotiated a revised gas sales agreement with Enertech Fuel Solutions Private Ltd. for the sale of gas from the Cambay field. The revised agreement is based on the recently announced Government of India Domestic gas price of $6.1/MMBtu plus an additional 20% premium. The revised gas price is now $7.32/MMBtu compared to the previous gas price of $4.2/MMBtu.

"The amended gas sales agreement is consistent with the recent Government of India revised domestic gas price announcement,” Wessel added.