Cairn Expects Lakshmi Field to Produce through 2012

Cairn Energy's Lakshmi gas field in Gujarat offshore is expected to last till December 2012 as the plateau natural gas production of 41.31 billion cubic feet this year will start to decline from 2006.

"Cairn Energy has estimated that natural gas production from Lakshmi field in block CB-OS/2 in Cambay Basin will be at plateau for three years beginning 2003, after which the production will start declining," official sources said.

In 2003, the company has estimated production of 41.31 billion cubic feet of gas and sale of 40.87 billion cubic feet. In the subsequent years, the field would produce 42.88 bcf (41.98 bcf sales) and 42.25 bcf (40.98 bcf sales).

The gas production forecast has been generated based upon an initially in place scenario of 370 billion cubic feet of gas to be developed by the existing six Lakshmi production wells plus phase-2 investment of an additional development well LB-5 (in September 2004) and booster compression (in January 2005).

Cairn Energy has estimated a recovery factor of 78 percent (239 billion cubic feet), adding the firm currently sells 3.57 million standard cubic meters per day of Lakshmi gas to Gujarat Gas Co Ltd (GGCL) and Gujarat Powergen Energy. The company will sell 2 mmscmd (70.63 million standard cubic feet per day) of gas to GPEC in 2003, 2.13 mmscmd (75.22 mmscfd) in 2004 and 2.13 mmscmd (75.22 mmscfd) in 2005. To GGCL, it will sell 1.27 mmscmd (44.85 mmscfd) of gas from 2003 to 2007.