Sources said that if everything goes according to plan, work on the field will begin three months down the line. The Ratna offshore has recoverable reserves of around 500 million barrels of oil per day. As in the case of other fields like Panna-Mukta and Ravva, the actual yield could end up being much higher.

The government's endeavour to revive interest in the field is a clear indication that it is keen on giving a fillip to domestic crude production. This is being done through development of new fields and working on existing ones. The Centre is also implementing enhanced oil recovery (EOR) schemes and extending some of them from pilot scale to full scalefield application.

There have been reports that Essar Oil is planning to offload part of its 50 per cent stake in the Ratna field to a foreign player though this could not be confirmed. The company has roped in PriceWaterhouseCoopers to work on a demerger proposal of its exploration business.

The Ratna offshore was identified along with the Panna-Mukta and Ravva fields for production sharing contracts involving the ONGC with a 40 per cent stake and other companies both from here and abroad. Reliance and Enron Oil hold 30 per cent each in Panna-Mukta while Videocon, Marubeni and Cairn Energy are ONGC's partners in the Ravva field.

With international crude prices on the rise, all around efforts are being made to increase local output especially with the largest producing field, Bombay High, showing signs of fatigue. Other sources of crude are being examined which include deepwater and coal bed methane.

The government has also received bids for work on blocks under the new exploration licencing policywhich offers more attractive fiscal terms. The other advantages include a level playing field for local companies, international oil price to contractors, zero cess liability and 50 per cent rebate in royalty payments for seven years in deep offshore areas.

INSIGHT
scope for revenue generation is very high

With international oil prices touching a nine year high of $25.90 per barrel, smaller wells are being reviving the exploration and production plans. Further, with the import bill for crude oil also shooting up considerably with commissioning of new refineries, the government too is keen in reviving dormant wells and increasing production from existing ones.

Since Ratna oilfields have already been explored and capped, cost of commissioning the well will be small though scope for revenue generation is very high considering the current prices and the fact that producers will at worst be getting international prices. Essar Oil would be more than happy to start production as it isdesperately in need for funds.

Shishir Asthana