New Delhi, Oct 12: British energy firm Cairn Energy Plc is likely to begin production of about 40 million standard cubic feet of gas per day from its Gauri field discovered in offshore Gujarat by the second quarter of 2004. "The company is investing 66 million dollar in development of Gauri and production is expected to begin in April 2004," cairn energy CEO Bill Gammell told a news agency here.

The Gauri field in CB/SO-2 block in Cambay Basin is estimated to contain between 60 billion cubic feet and 200 BCF of recoverable gas reserves. The field is expected to produce 40 million standard cubic feet of gas per day for a plateau period of 4 years after which output would decline gradually, he said.

Cairn would drill four more wells at the Gauri field apart from installing a gas production platform, pipeline and gas processing unit. Cairn is already producing gas from its Lakshmi field that is located in the same block CB/OS-2.

It holds a 50 per cent working interest in Gauri where its partners state-run oil and natural gas corporation holds 40 per cent and Tata 10 per cent.

Gammell said oil has also been struck in the shallow water Gauri gas field. The GA-3 well, the third well of the Gauri development drilling project in block CB/OS-2, stumbled upon oil bearing sands which subsequently tested at 5,270 barrels per day. Besides Lakshmi gas and Gauri gas discoveries, Cairn had previously found oil at a location named at Parvati, gas at Ambe and oil at Lakshmi field in the same block.

Bureau Report