Essar Offers Cairn Stake in Rajasthan Block

Essar Oil Ltd has offered Cairn Energy a stake in its Rajasthan block. "Given its current exploration commitments, EOL is realigning its portfolio and is planning a farm-out of 25 percent to 35 percent participating interest in the (RJ-ON-90/5) block. We wish to invite an expression of interest from Cairn Energy for a possible farm-in in the block," said EOL.

Currently, EOL has 75 percent stake in the Bikaner-Nagaur basin block, and Polish Oil and Gas Company (POGC) has the remaining 25 percent. Essar said that with Cairn's experience in the state of Rajasthan and successful track record in India, they would be a valued partner in the block. Cairn has 100 percent stake in an adjacent RJ-ON-90/1 block in Rajasthan, the site of recent 20 million ton oil discovery and the previous Saraswati discovery that is estimated to have 14 million tons of in place oil reserves.

EOL is currently implementing the third phase of exploration in the RJ-ON-90/5 block, where the first well, Nanuwala-I, had established presence of light hydrocarbons.

Seismic survey had identified two prospects, Nanuwala and Binjbayla, with a real extent of 12 and 20 sq km - in the block. The work program for Phase-III of exploration comprises of drilling of one exploration well to a depth of 2,200 meters.