Cairn India is set to step up investment and activities in Krishna-Godavari basin in a bid to reposition itself on the east coast.
While the private oil and gas producer is to pump in about Rs.500 crore in its offshore block, about $30 million has been planned for drilling deep exploration wells in Ravva JV field. Also, the company is expected to submit the commerciality of an onshore well in KG basin this fiscal.
Though Cairn is looking for both oil and gas potential in the KG basin, it primarily sees prospects for gas discovery.
In the KG offshore block, work on which was held up pending clearance from the Defence Ministry, the company has been given nod to carry out exploration in 65 per cent of the block area while the remaining 35 per cent has been declared as ‘no go area’. Planning and tendering for the acquisition of 3D seismic data is underway.
“It will be 100 per cent owned by Cairn, and we hope to invest about Rs.500 crore over the next 2-3 years,” P. Elango, chief executive officer, Carin India, told The Hindu in an interview here on Tuesday.
High risk, high value
Cairn India, along with its JV partners in Ravva, is also working on a project to drill deeper wells for gas. Cairn has planned to drill two wells. The drilling for the first well is expected to begin in the next few weeks. This drilling of “high risk, high value” exploration wells will entail an investment of about $80 million. In the JV, Cairn India holds 22.5 per cent. The rest is held by Videocon and ONGC.
Mr. Elango said the company had identified some oil potential in the Nagayalanka onshore block in the KG basin, which is a joint venture with ONGC.
It is expected to file declaration of commerciality of an onshore well during this fiscal. And, it is likely to file field development plan (FDP) during the next fiscal.
However, Cairn’s major portion of operations is focussed on Rajasthan blocks and it is expected to consume about 80 per cent of the proposed capex of $3 billion spread over three years.
