Cairn Energy Proposes Plan for Krishna-Godavari Basin
Cairn Energy has mapped out a $300-million oil and gas exploration program for its most recent hydrocarbon find in deep waters of Krishna-Godavari basin, in offshore Andhra Pradesh, during the next four years.
"We have chalked out a $300-million phased developed program for the Annapurna gas field in the KG-DWN-98/2 block, offshore, east coast, where we had a major gas discovery in just a years time of starting exploration," company officials said. The field water depth ranges from 2,625 to 3,940 feet and is located 25 miles offshore. The field is covered by 3D seismic and one well has been drilled and tested. A further appraisal well is in the drilling program for August/September.
The development program would begin October 2001 with initial study to indentify the optimum development scheme. The anticipated duration of this study would be 120 days, they said, adding the company has floated tenders for front-end engineering and design study.
The exploratory well drilled on prospect "R" reached a total depth of 7,644 feet from sea level and encountered several gas-pay zones below 6,135 feet in late June, 2001. The well-flowed gas at a combined stabilized rate of more than 2.3 million cubic meters per day through 64/64" choke. The initial reserve estimates are in the range of 0.75 to 1 trillion cubic feet (21-28 billion cubic meters) of dry gas. The "R" discovery would be appraised by a second well to be drilled later this year. The second phase, comprising detailed development study would be undertaken during first six months of 2002 adding preparation of tender packages and evaluation of tenders (phase-III) would be done in the third and fourth quarter of 2002. The initiation of phase two and three would be subject to findings of phase-I and would be at the option of Cairn. Production from the field is anticipated to begin by end 2002.
Cairn Energy, in cosortium with Videocon, Oil and Natural Gas Corporation and Marubeni of Japan, is producing 50,000 barrels of oil per day and one million cubic meters of gas per day from the Raava fields. The field holds 250 million barrels of oil equivalent reserves. ONGC holds 40 per cent interest in Raava fields while Videocon has 25 per cent stake. Cairn Energy, which is the operator of the field, has 12.5 percent stake and the remaining 12.5 percent is with Marubeni.
Cairn has also made four oil and gas discoveries - Lakshmi, Ambe, Gauri and Parvati - in the exploration block CB-OS/2 located in Cambay offshore basin, off which Lakshmi field would start commercial production from July 2002, sources said.