Cairn India Ltd has turned to a fresh block in Krishna-Godavari Basin for its hydrocarbons pursuit after successfully tapping the Rajasthan fields.
The company has initiated a multi-well exploration drilling campaign in its onshore block that it had won in the fifth round of New Exploration Licensing Policy (NELP).
Speaking to Business Line after Cairn announced a major increase in its oil resource reserve that would lead to higher production from its Rajasthan fields, Mr Rick Bott, Executive Director and Chief Operation Officer, Cairn India, said, “Post the analysis of the seismic data, the exploration team has worked up the best possible prospects for drilling,” he said.
“The work in the producing Rajasthan fields, Cambay Basin block, and Ravva fields (East Coast) is still going on. But we are targeting to meet the commitments made by us in the various NELP blocks awarded in India as well as in a block in Sri Lanka,” he said. Cairn India has 10 blocks in India and one in Sri Lanka.
In block KG-ONN-2003 /1 Cairn India has 49 per cent stake and is the operator, while ONGC holds remaining 51 per cent participating interest. The first rig to spud the well has been mobilised and the contract awarded.
The drilling programme includes three wild cat wells - to be drilled till June 2010.
Wild cat wells are drilled in areas which have not been explored. Subsequently, two exploratory wells would be added around August 2010.
Processing crude
Asked about recent announcement on enhanced resource potential of Rajasthan fields, he said, “Cairn has designed the Mangala Processing Terminal (MPT) to process crude before evacuating for sale to Government nominees and private refiners.
The MPT will process crude from the Mangala, Bhagyam and Aishwariya fields. The MPT is designed to process 205,000 barrels a day of crude (bopd) with scope for further expansion.”
“Now with the enhanced resources, the company is confident of producing 240,000 bopd from its Rajasthan oil fields, up from the earlier peak production profile of 175,000 bopd through the life of the field (which is 40 years),” he added.
EOR programme
Currently, Cairn is producing over 25,000 bopd from its Mangala field in the Rajasthan block and Bhagyam and Aishwariya are expected to go on stream in the next calendar year. Rajasthan blocks continue to show good prospects. Cairn has simultaneously started work on an enhanced oil recovery (EOR) programme.
EOR is normally implemented when the production profile starts declining. Cairn plans to drill 10 wells in the next two years for implementing EOR programme, he said adding that the first of these wells will be drilled in Mangala.
The investments for this enhanced resource reserves development and production will be discussed with joint venture partner ONGC and then deliberations will take place with the management committee of the block, he said. The management committee , which has the nominees of the contractors as well as the representatives of Directorate General of Hydrocarbons and a Government nominee, reviews the operations in the block.
Source: Hindu Business Line
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