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Cairn holds out hope

New Delhi, Aug. 18: Cairn India’s prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 trillion cubic feet (tcf), over half of which can be produced, the company said today.

The company has so far made 36 discoveries in its Rajasthan block, including the biggest onland oilfield of Mangala. The latest estimates come after a significant discovery in the Raageshwari find.

“RDG (Raageshwari Deep Gas) field is estimated to hold 1-3 tcf of gas in-place with estimated recovery factor of over 50 per cent,” the company said in its latest corporate presentation.

Cairn sells 8-9 million cubic feet per day (mmcfd) of gas from the Raageshwari Deep gasfield, which it plans to more than double to 22 mmcfd by the end of the current fiscal and take it to 90 mmcfd by 2015-16.

“Considering the significant gas volume potential in the block, approvals are sought to lay a 30-inch pipeline to connect to the existing gas grid in Gujarat,” it said. In all, 180km of pipeline is proposed to be laid.

Recently speaking to analysts, Cairn had said, “We are really excited that gas is likely to be around 15-20 per cent of the resource base being drilled.”

Cairn said it planned to invest $200 million in Raageshwari Deep Gas to upgrade facilities and lay pipelines to help produce more.

The company had estimated an in-place resource potential of about 10 billion barrels of oil and oil equivalent gas in the Rajasthan block. Of this, 5.2 billion barrels of oil equivalent (boe) have already been established and another 0.6 billion boe have been discovered.

The remaining 4.2 billion boe is yet to be drilled, according to the presentation.

Cairn has made eight discoveries since resumption of exploration a year back.

“Current drilling programme is anticipated to add 1.2 billion boe by FY15,” it said.

It’s Mangala, Bhagyam and Aishwariya oilfields hold 2.2 billion boe.

Cairn, which is investing $3 billion to raise oil production from the Rajasthan block, produced 181,894 barrels per day of oil in the April-June quarter while gas output doubled to eight million standard cubic feet per day.

Cairn is also likely to get a 10-year extension for its licence to explore and produce from the Rajasthan block.

 
 
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