Cairn India, the operator of biggest crude oil producing onshore asset in the country, plans to tap and sell gas from another field...
Cairn India, the operator of biggest crude oil producing onshore asset in the country, plans to tap and sell gas from another field — Kaameshwari — in the Barmer block in Rajasthan. Currently, the Barmer block produces about 25% of country’s crude oil and marginal volumes of natural gas are drilled from Raageshwari fields in the same block.
“Kaameshwari is another small field with gas resource potential and Cairn is trying to monetise it,” said an official privy to the development.
Cairn India and its PSU joint venture partner ONGC have sought expressions of interest (EoI) to sell 14,000 standard cubic metre per day (scmd) from the Kaameshwari west field of RJ-ON-90/1 block, popularly known as the Barmer block.
The EoI seeks customers on a fall-back basis for five years. This means there may be a possibility of supply dropping during these years. The gas will be delivered at the outlet of Kaameshwari processing facilities at Dudiyo village. The EoI closes on January 28, 2015. Cairn has reportedly made three discoveries Kaameshwari West-2 (oil and gas), Kaameshwari West-3 (gas) and Kaameshwari West-6 (gas). However, the size of the discoveries are not immediately known.
“Cairn is trying to get the market response for small volumes of gas. In addition, the explorer is in the process of making the field development plan and then share it with partner ONGC,” said the official. The Kaameshwari gas discoveries, first announced in 2003 and subsequently in 2007, lies within the tight nature of the reservoir rock.
The discoveries were made in Kameshwari West-2 and Kameshwari West-3 wells in the company’s productive Rajasthan block. The Kameshwari West-2 discovery, located northwest of the 2003 Kameshwari discovery and south of the giant Mangala field, encountered 18.2 metre of net oil pay. The Kameshwari West-3 discovery is located to the north of Kameshwari West-2 and encountered up to 16 metres of gas pay, the company had said.
Producing bigger volumes of gas from Barmer block is crucial for Cairn India to get a 10-year extension for the asset. So far, the Directorate General of Hydrocarbons (DGH) is of the view that Barmer is primarily oil producing and, hence, contract can be extended only for five years. Cairn India’s contract for the Barmer block — RJ-ON-90/1 — in Rajasthan is valid till May 14, 2020. The Anil Agarwal-promoted explorer wanted the contract to be extended till oil flows or at least by another 10 years till 2030.