By an Online Correspondent
MUMBAI, Oct. 9 -- Essar Oil Ltd., Mumbai, plans to invest $31 million on an exploration and development program in Rajasthan, northwestern India.
Following an oil discovery with Nanuwala-1 in the Bikaner-Nagaur basin, Essar plans a second wildcat near Raisinghnagar.
A company official said the wildcat flowed 35°-gravity oil and opened production in an unexplored area of Rajasthan. He said Essar is planning 15-20 development wells over 2 years to develop reserves that could be as large as 150 million bbl.
Essar signed a production-sharing contract for two blocks in 1996 with the Indian government and Oil India Ltd. Essar has 75% and Polish Oil and Gas Co. 25% of the contract.
There has been little exploration in Rajasthan although the geology is similar to areas with production across the border in Pakistan. The Royal Dutch/Shell Group-Cairn Energy PLC consortium found oil in southern Rajasthan.
