Cairn in race for two Lankan oil blocks
Sri Lanka's block 001 is near the Cauvery basin, where oil and gas has already been discovered. It is attracting bids from other international oil exploration cos as well.
By Debjoy Sengupta, TNN |
KOLKATA: Cairn India has entered the race for acquiring two oil exploration blocks in Sri Lanka, by bidding for blocks 001 and 002 under the ongoing Sri Lankan licensing round. Back home, it has decided to undertake exploratory drilling in new areas in Rajasthan.
According to sources, Sri Lanka���s block 001 is spread over 3,338 sq km, and block 002, 3,572 sq km. Block 001 is, in fact, closer to the Cauvery basin, where oil and gas has already been discovered, hence it is attracting bids from other international oil exploration companies as well. The chances of striking oil here are higher as geological features of the blocks are similar. In India, Cairn Energy India (CEIL) ��� the operator, on behalf of joint venture partners Cairn India and ONGC in contract area RJ-ON-90/1 in Rajasthan ��� has decided to commence production activities and development drilling at the Mangala Field.
The drilling and completion activities will commence during the third quarter of 2008, while production from the Mangala field is slated to begin by 2009. Development drilling and production activities from other fields in Rajasthan will commence in 2009. CEIL has already invited expressions of interest from service contractors for development and exploratory drilling in Rajasthan. The primary term of the Contracts will be three years, with an optional two extension periods of one year each.
Interestingly, Cairn has decided to focus on both mature and relatively unexplored areas. It will undertake operatorship at onshore and shallow water locations with selective partnerships through balanced portfolio of risk, reward and exposure. It aims to achieve organic growth through exploration and has decided to maximise returns on Ravva and Rajasthan through exploration activities. The company���s cumulative exploration expenditure between 2007 and 2009 is expected to touch $150 million (Rs 600 crore).
It will continue to renew exploration portfolios through licensing rounds, farm-ins and trades, and is currently reviewing the NELP VII data package.
According to sources, Sri Lanka���s block 001 is spread over 3,338 sq km, and block 002, 3,572 sq km. Block 001 is, in fact, closer to the Cauvery basin, where oil and gas has already been discovered, hence it is attracting bids from other international oil exploration companies as well. The chances of striking oil here are higher as geological features of the blocks are similar. In India, Cairn Energy India (CEIL) ��� the operator, on behalf of joint venture partners Cairn India and ONGC in contract area RJ-ON-90/1 in Rajasthan ��� has decided to commence production activities and development drilling at the Mangala Field.
The drilling and completion activities will commence during the third quarter of 2008, while production from the Mangala field is slated to begin by 2009. Development drilling and production activities from other fields in Rajasthan will commence in 2009. CEIL has already invited expressions of interest from service contractors for development and exploratory drilling in Rajasthan. The primary term of the Contracts will be three years, with an optional two extension periods of one year each.
Interestingly, Cairn has decided to focus on both mature and relatively unexplored areas. It will undertake operatorship at onshore and shallow water locations with selective partnerships through balanced portfolio of risk, reward and exposure. It aims to achieve organic growth through exploration and has decided to maximise returns on Ravva and Rajasthan through exploration activities. The company���s cumulative exploration expenditure between 2007 and 2009 is expected to touch $150 million (Rs 600 crore).
It will continue to renew exploration portfolios through licensing rounds, farm-ins and trades, and is currently reviewing the NELP VII data package.
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