Oilmax Energy targets 2,000-to-10,000 BOE rise by FY29/30

Oilmax Energy targets oil-and-gas production of about 10,000 barrels of oil equivalent, or BOE, a day by FY29/30, up from about 2,000 BOE a day currently. The plan rests on output from Amguri and Indrora, development drilling at Mewad, and planned production starts at Tiphuk, Duarmara and the Chhattisgarh coal-bed methane asset.

How will Oilmax reach 10,000 BOE a day?

Oilmax plans to reach about 10,000 BOE a day by developing a portfolio that includes producing fields, discoveries, an asset under development and a newly awarded offshore block. The presentation describes the FY29/30 objective as a fivefold increase from current production of about 2,000 BOE a day, rather than providing an annual production forecast for each field.

The two producing assets listed on the portfolio page are Amguri in Assam, at 1,850 BOE a day, and Indrora in Gujarat, at 250 BOE a day. Their disclosed field rates total 2,100 BOE a day, slightly above the portfolio-level figure of about 2,000 BOE a day used in the presentation. Oilmax does not explain the difference between the field-level total and the rounded portfolio figure.

The expansion therefore depends on more than current production at Amguri and Indrora. Oilmax identifies drilling, field development, reservoir management and production optimisation as the mechanisms for increasing output, but it does not disclose a field-by-field BOE-a-day contribution to the FY29/30 target.

Which Oilmax fields are producing now?

Oilmax’s disclosed producing base is led by Amguri at 1,850 BOE a day, compared with 250 BOE a day at Indrora. Amguri therefore represents most of the 2,100 BOE a day implied by the two field-level production figures, while Indrora is the smaller disclosed contributor.

At Amguri, Oilmax says it restarted production in 50 days during COVID after the field had been shut in for more than 10 years. The company also says reserves increased fourfold from initial estimates, although the presentation does not give either the initial reserve estimate, the resulting reserve volume or the date of the assessment.

Indrora has proved reserves of 4 million BOE, or MMBOE, with existing wells, according to the presentation. The company connects Indrora’s development with Mewad, where new wells are producing from the Sobhasan Sand, but it does not separate Mewad production from Indrora’s stated 250 BOE-a-day rate.

Oilmax describes Mewad as its first producing exploration-and-production asset and targets block-level production of about 1,000 BOE through phased development. Three new wells have been drilled and are producing, while a horizontal well is under drilling. The presentation says Indrora field development is expected to drive revenue growth from FY27 onwards.

When could Oilmax’s discovered assets enter production?

Oilmax expects Tiphuk to begin in the fourth quarter of FY27 and Duarmara to begin in FY28. These milestones are important to the production plan because neither asset has a disclosed individual BOE-a-day target, leaving their potential contribution to the 10,000 BOE-a-day objective unspecified.

Tiphuk was revived after 15 years of inactivity and tested gas at 50,000 standard cubic metres per day, or SCMD, during extended well testing. That test rate is not presented as commercial production, and the presentation does not state the expected sales-gas volume or a conversion from SCMD to BOE a day.

Duarmara’s reserves increased 160-fold to 40 MMBOE, according to Oilmax. One well has been drilled, while testing and commercial production are still to start. The stated FY28 timing is later than Tiphuk’s expected Q4 FY27 start, so the portfolio’s development schedule extends across at least two financial years before the FY29/30 output target.

The Chhattisgarh coal-bed methane, or CBM, asset is under development and is expected in two years. Oilmax calls out significant resource potential but gives no reserve volume, well count, gas-flow rate or production target. GK Offshore in Kutch is a newly awarded block, with no start date or output estimate disclosed.

What reserves and economics does Oilmax disclose?

Oilmax says its five oil-and-gas blocks and first offshore block contain about 70 million barrels of hydrocarbon reserves, with two-to-three-times upside. The presentation explicitly excludes the CBM asset and GK Offshore from this figure, so it does not cover the full set of assets listed in the portfolio.

The company separately reports 4 MMBOE of proved reserves at Indrora and 40 MMBOE at Duarmara. These figures cannot be added directly to the approximately 70 million-barrel portfolio figure because the presentation does not provide reserve classifications for every asset, ownership interests, or confirmation that all reported volumes share the same reporting basis.

Management says the upstream portfolio has an earnings before interest, tax, depreciation and amortisation, or EBITDA, margin above 50% and a production cost of about US$5 a barrel. These are company-presented portfolio attributes, not field-specific forecasts of future realised prices, costs or margins.

Oilmax also states that higher field output can contribute significantly to EBITDA as operations scale. However, the presentation does not disclose capital expenditure, development funding, well-by-well drilling dates or a yearly output bridge from about 2,000 BOE a day to about 10,000 BOE a day.

How does Oilmax fit within Asian Energy Services?

Oilmax is the upstream-production pillar in Asian Energy Services Limited’s integrated model, alongside technical services and the Kuiper Group’s international operations. Asian Energy Services presents Oilmax as adding assets with current production of about 2,000 BOE a day and a target of about 10,000 BOE a day by FY29/FY30.

The group’s technical-services pillar has an order book of Rs 1,633 crore, which management says provides two-to-three years of revenue visibility. That order-book measure is separate from Oilmax’s upstream plan and does not state funding, revenue or capital expenditure for Amguri, Indrora, Tiphuk or Duarmara.

Kuiper is presented as generating about US$50 million to US$60 million of yearly revenue at an EBITDA margin of about 8%, with potential to reach about US$100 million by FY30. Oilmax’s disclosures instead focus on BOE a day, reserves, gas-testing rates and production-start expectations, reflecting the different operating measures of the upstream business.

Conclusion

Oilmax’s target of about 10,000 BOE a day by FY29/30 combines the existing production base at Amguri and Indrora with additional drilling at Mewad and planned starts from discovered and developing assets. The disclosed rates at Amguri and Indrora establish the current base, while the presentation leaves the production contribution of Tiphuk, Duarmara, CBM and GK Offshore unquantified.

The next disclosed events are Tiphuk’s expected Q4 FY27 start, Duarmara’s expected FY28 start and the CBM asset’s expected arrival in two years. Further field testing, commercial-start confirmation, additional Mewad drilling and asset-level production guidance would show how Oilmax intends to bridge the gap to its FY29/30 target.