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UK to invest $170 mn in India
UK`s Cairn Energy will invest up to $170 million in exploration and production of oil and gas in India during 2002.
UK’s Cairn Energy will invest up to $170 million in exploration and production of oil and gas in India during 2002.
"We plan to invest between $120-140 million in development of Lakshmi oil and gas discovery in Cambay offshore basin and another $20-30 million in exploration at the onshore block in Rajasthan," said Cairn Energy president Bruce McCarthy in New Delhi.
McCarthy said the Lakshmi field would start commercial production in July 2002 and gas for 2 million cubic meters had already been firmed with British Gas.
While Cairn would invest heavily in developing Lakshmi oil and gas field, and exploration in Rajasthan, it would be integrating well data with 2D and 3D seismic data in the latest hydrocarbon finds in Krishna-Godavari basin, offshore Andhra Pradesh, he said. The British company was looking for partners for deepwater reserves of KG basin, he said, adding, "we are talking to a couple of international companies with expertise in deepwater exploration to reduce our 100 per cent interest in KG basin project."
Refusing to divulge identity of companies Cairn was talking to, McCarthy said a partner for its deepwater foray was likely to be finalised by second half of 2002.
Heavy capital expenditure would be required if Cairn were to take on the development itself and the company was already committed to spending more than £150 million (over Rs 1,050 crore) in KG basin, he said.
Cairn has chalked out a $300-million, phased development programme for the Annapurna gas field in the KG basin block (KG-DWN-98/2), where it had a major gas discovery in just a year of starting the exploration, McCarthy said. After Annapurna (estimated to have 400-800 billion cubic feet of gas reserves), Cairn discovered 40-60 million barrels of oil reserves in Padmavati and 40-60 million barrels of oil and 100-200 billion cubic feet of gas at Kanaka Durga in the same block.
He said the company had invested about $94 million in exploration of KG basin during 2001.
The Edinburg-based company would begin development of the Annapurna gas find this month. It would launch a study to identify the optimum development scheme and appraise the discoveries.
Commercial evaluations and appraisal planning for the discoveries were underway, McCarthy said, adding production from Annapurna field was anticipated to begin by end-2002. Cairn Energy, in consortium with Videocon, Oil & Natural Gas Corporation and Japan's Marubeni, is producing 50,000 barrels of oil per day and 1 million cubic meters of gas per day from the Raava fields. The field holds 250 million barrels of oil equivalent reserves.
Cairn has also made four oil and gas discoveries -- Lakshmi, Ambe, Gauri and Parvati -- in the exploration block CB-OS/2 located in Cambay offshore basin.
Bureau Report
McCarthy said the Lakshmi field would start commercial production in July 2002 and gas for 2 million cubic meters had already been firmed with British Gas.
While Cairn would invest heavily in developing Lakshmi oil and gas field, and exploration in Rajasthan, it would be integrating well data with 2D and 3D seismic data in the latest hydrocarbon finds in Krishna-Godavari basin, offshore Andhra Pradesh, he said. The British company was looking for partners for deepwater reserves of KG basin, he said, adding, "we are talking to a couple of international companies with expertise in deepwater exploration to reduce our 100 per cent interest in KG basin project."
Refusing to divulge identity of companies Cairn was talking to, McCarthy said a partner for its deepwater foray was likely to be finalised by second half of 2002.
Heavy capital expenditure would be required if Cairn were to take on the development itself and the company was already committed to spending more than £150 million (over Rs 1,050 crore) in KG basin, he said.
Cairn has chalked out a $300-million, phased development programme for the Annapurna gas field in the KG basin block (KG-DWN-98/2), where it had a major gas discovery in just a year of starting the exploration, McCarthy said. After Annapurna (estimated to have 400-800 billion cubic feet of gas reserves), Cairn discovered 40-60 million barrels of oil reserves in Padmavati and 40-60 million barrels of oil and 100-200 billion cubic feet of gas at Kanaka Durga in the same block.
He said the company had invested about $94 million in exploration of KG basin during 2001.
The Edinburg-based company would begin development of the Annapurna gas find this month. It would launch a study to identify the optimum development scheme and appraise the discoveries.
Commercial evaluations and appraisal planning for the discoveries were underway, McCarthy said, adding production from Annapurna field was anticipated to begin by end-2002. Cairn Energy, in consortium with Videocon, Oil & Natural Gas Corporation and Japan's Marubeni, is producing 50,000 barrels of oil per day and 1 million cubic meters of gas per day from the Raava fields. The field holds 250 million barrels of oil equivalent reserves.
Cairn has also made four oil and gas discoveries -- Lakshmi, Ambe, Gauri and Parvati -- in the exploration block CB-OS/2 located in Cambay offshore basin.
Bureau Report