Uchenna Izundu
International Editor
LONDON, Jan. 30 -- Cairn Energy PLC, Edinburgh, says it is confident it can deliver oil from its northern Rajasthan development from 2009 and is in talks with India to reach a satisfactory pipeline offtakes agreement this summer.
"The technical specifications for three purpose-built rigs have been released and bids sought for the provision of these 'flex type' modularized rigs, which will be used to drill the development wells," Cairn said. "These state-of-the-art rigs will allow the drilling of the Mangala horizontal wells and running completions, which will be used to deliver the first phase of the target production rate of 150,000 b/d of oil."
Cairn plans in the first quarter to submit to the Indian government its field development plans for Bhagyam and Shakti, which are part of the Rajasthan project (see map, OGJ, Jan. 23, 2006, p. 38). Mangala is the biggest field, and engineering work for its production facilities is under way in Houston. Bhagyam is the second-largest field, along with Shakti field. A separate plan will be offered for Guda.
Cairn is ready to start commercial production from Saraswati field in the southern part of its Rajasthan block once it finalizes an oil sales deal with the government. First commercial production from Raageshwari oil field is expected to commence within 12 months of Saraswati first production.
Oil discoveries
Separately Cairn has found more oil in Rajasthan after a test drill showed a flow of 83 b/d of 13-15º oil. Cairn said its Shakti-NE-1 well, 6 km northeast of the Shakti-1 discovery, encountered 6 m of net oil pay.
Cairn plans to carry out development drilling in the Cambay basin during 2007 and reported only residual hydrocarbons in the Tisua-1 exploration well, spudded last July and operated by ONGC in the Ganga Valley in northern India.
Severe flooding in Rajasthan has interrupted appraisal work to the north and west of its development area, and Cairn has asked the government to extend its deadline to finish its work program, which was meant to end in November 2006.
In eastern India, where Cairn operates the Ravva block with a 22.5% stake, it has discovered oil and gas in the main producing intervals with 38 m of net oil pay. The RD-8, also an appraisal well, encountered 16 m net of Middle Miocene oil-bearing sands with average porosity of 30% and average oil saturation of 60%. A 3.5-m thick sand, thought to be absent, was encountered in an oil leg. "Current operations are on a crestal infill development well (RC-5)," Cairn added.
The company abandoned an onshore exploration well (RX-9), spudded in June 2006, after finding no sufficient commercial quantities of hydrocarbons.
In the Krishna Godavari basin, Cairn's UD-1 ultradeep exploration well struck hydrocarbons in a secondary objective. The well has been sidetracked for mechanical reasons and is operating above the main target.
Western India infill
The Gauri refinery in western India will be upgraded in the third quarter to process 9,000 b/d of oil. Cairn will begin an infill development program for four offshore wells on Block CB/OS-2 in the second half of this year.
Cairn submitted joint venture bids in the NELP-VI exploration round, partnering with ONGC, Videocon, Tata Petrodyne, BG Group, and Total SA, and is waiting for the results.
Sangu
Gross reserves at Sangu gas field in Bangladesh have been cut by 125 bcf because of poor production and a complex geological structure. "A further 62 bcf has been reclassified from the probable (2P) to the possible (3P) category, resulting in a total gross reserves reduction of 187 bcf," Cairn added.
It is drilling three wells in Bangladesh—an appraisal well on South Sangu, an infill development well on Sangu, and a potential high impact exploration well on the Hatia prospect off Bangladesh. Hatia-1 will be a vertical exploration well to be drilled on a 1 tcf unrisked prospect 10 km northwest of Sangu.
Contact Uchenna Izundu at [email protected].
