recent analyst call.
MWP commitments are submitted by contractors while bidding for oil and gas blocks. It stipulates the minimum amount of work that the contractor is prepared to undertake during the exploratory phase including surveys, exploratory drilling, etc.
The CCI has so far this year cleared 25 oil and gas blocks for exploration and production activities with investments worth $13.42 billion and a further investment of $2.5 billion in the next few years. Apart from Cairn’s block, two others in the KG Basin — ONGC’s KG-OSN-2009/4 block and the RIL-BP combine’s KG-DWN-2005/2 block — had also received partial CCI clearance. While RIL-BP decided to surrender the block as as about 70% of the 1,949 sq km block fell in an area where DRDO and navy exercises are conducted, ONGC is said to be considering a reduced MWP on Cairn’s lines.
Oil production from Ravva seeing a natural decline, averaging 22,600 barrels of oil equivalent per day (boepd) in the July-September quarter. The company has also completed a 4-D seismic study at Ravva to identify pockets of oil deposits that have been bypassed. It will soon begin targeted well drilling to extract oil from these wells.
“As we continue to improve the recovery rates and produce bypass oil in Ravva main field, an infill drilling campaign based on applying 4-D seismic technology has been scheduled during the second half of this financial year. Additionally, the government has allowed the development of contingent resources of existing discoveries within the block,” said Elango during the call.
The company has indicated that in its KG Basin onshore Nagayalanka block, the appraisal well drilled to evaluate the potential of Nagayalanka-SE discovery resulted in a threefold increase in productivity, significantly improving the block’s commerciality. It did not elaborate on the extent of reserves found in the tight reservoir basin found in the mesozoic zone. A DoC for the block is expected to be submitted in this fiscal and a field development plan next year.
Cairn’s current production is 178,000 boepd and expects to exit FY14e at greater that 200,000 boepd, led by Rajasthan which produced around