By an OGJ Online Correspondent
MUMBAI, Apr. 22 -- The Indian government will hold road shows in four cities during May and June to offer 27 blocks for oil and gas exploration under the third round of its New Exploration and Licensing Policy (NELP). The meetings will be held in Singapore May 27-28, London June 6-7, Houston June 10-11, and Calgary June 13-14.
India has offered 9 deepwater blocks, 7 shallow-water blocks, and 11 onshore blocks in the licensing round, bidding for which is slated to close on Aug. 20. Of the blocks available, 5 had been offered in the first round, 16 were resubmitted with fresh data, while 6 have had areas modified.
About 93 billion rupees ($1.9 billion) were invested acreage covered by the first two rounds of NELP, which began in 1999 and for which 47 contracts were signed.
Marketing of the 27 new blocks kicked off in New Delhi Apr. 9 with a road show attended by several Indian and international oil companies. Among them, British explorer Cairn Energy PLC said it would definitely bid for one or more of the blocks.
Cairn oil yields
Meanwhile, Cairn has reported strong flows of good quality crude oil in two development wells in Lakshmi gas field. The two wells flowed on test at a combined rate of 10,446 b/d.
The first well, on the southern edge of the field, was directionally drilled to 1,460 m TD and encountered two oil-bearing zones below the main gas-bearing horizons, which are the subject of an ongoing development project.
The first drill stem test (DST), testing an interval of 1,411-20 m, flowed at a stabilized rate of 5,196 b/d of 44° API gravity oil through a 56/64 in. choke with flowing wellhead pressure of 575 psi and a GOR of 498:1.
The second DST, testing an interval of 1,382-88 m, flowed at a stabilized rate of 5,250 b/d of 44.5° API gravity oil through a 1-in. choke with flowing wellhead pressure of 511 psi and a GOR of 397:1. The flow rates of the wells were both constrained by surface test equipment limitations.
The Lakshmi gas development project is on schedule to produce first gas in August 2002 (OGJ Online, Sept. 21, 2001).
Cairn Energy's Chief Executive Bill Gammell said, "These . . . oil flow rates demonstrate the high potential reservoir deliverability, although further appraisal is required to determine the reserve potential. We are currently reviewing an accelerated appraisal program for this discovery, which follows the previous three oil discoveries made by Cairn on the same block last year. In light of this result, we are reassessing the total oil potential on the block."
