Cairn India has sought fast track clearance for its Rs.5,000-crore Integrated Block Development Plan (IBDP) from the Petroleum and Natural Gas Ministry.
The company has informed the Ministry that it is to make Rs.5,000 crore risk investment during 2013-16 under the IBDP to optimise the potential of the Rajasthan block at the earliest. The proposed investment is significantly higher than the Rs.1,000-crore threshold limit entitled for special consideration by the government, Cairn India CEO P. Elango has said in a letter to Joint Secretary (Exploration) A. Giridhar.
Cairn India’s assets in Rajasthan — Bhagyam, Aishwarya, Raageshwari oil and Raageshwari gas — are now producing around 1.50 lakh barrels of oil a day. It has also around 25 new discoveries to find hydrocarbons, and wants to resume exploration work in a big way. The company, at present, has 7.3 billion barrels of oil/oil equivalent in place in the Raageshwari block. Commercial production of oil from the block is set to go beyond 2030.
In the letter, Mr. Elango has indicated the reduction in the lead time between discovery and production from 36 months to 18 months, without any downside in quality or oversight.
The company has also suggested that the government to allow extended well tests and modular early production systems for all feasible discoveries.
“We believe that the changes will help fasttrack exploration and development works in the block, and bring closer to the target of 300,000 barrels of oil a day at the earliest,’’ Mr. Elango stated in the letter.