Cairn In­dia to in­vest $100m to drill well in KG basin

The Pak Banker - - Front Page -

HY­DER­ABAD

Cairn In­dia and its joint ven­ture part­ners of Ravva fields are plan­ning to in­vest about USD 100 mil­lion to drill a deeper well in the Kr­ish­naGo­davari basin.

The JV plans to drill the ex­plo­ration well to 4,000 me­ters deep, and es­ti­mates that the deep­wa­ter prospect in the Ravva Oil Fields may hold about 350-bil­lion cu­bic feet of ‘re­cov­er­able gas’, sources told me­dia. The drilling pro­gram is expected to start in the sec­ond half of next fi­nan­cial year. In a re­cently con­cluded meet­ing, the Ravva JV has ap­proved the op­er­a­tor’s pro­posal to drill one ex­ploratory well with an es­ti­mated in­vest­ment of USD 90 to USD 100 mil­lion, a source said. JV of­fi­cials could not be reached for their com­ments. Cairn In­dia, with 22.5 per­cent stake as an op­er­a­tor in the ven­ture, shares Ravva with Marubeni-owned Ravva Oil (12.5 per­cent), Video­con (25 per­cent) and ONGC (40 per­cent). The PSC was signed in 1994 with Com­mand Pe­tro­leum as op­er­a­tor, which sold its stake to Cairn.

Ac­cord­ing to in­dus­try ex­perts the JV will need a rig that can drill ‘high tem­per­a­ture/high pres­sure’ well in wa­ter depths of up to 20 me­ters.

Ravva has al­ready com­pleted over 17 years of pro­duc­tion. Orig­i­nally es­ti­mated to pro­duce 101 mil­lion bar­rels of crude oil, the field has to date pro­duced more than 249 mil­lion bar­rels and sold 310 bil­lion cu­bic feet of gas.

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