India

By OGJ editors
HOUSTON, July 2 – A unit of Bengal Energy Ltd., Calgary, was awarded Block CY-OSN-2009/1 in India’s Cauvery basin.

The block covers 340,000 acres 7-16 km offshore with two-thirds in less than 100 m of water. Bengal has identified an 18,750-acre geologic structure from a detailed technical review of existing 2D seismic data and will shoot 3D seismic to better define it.

Oil companies within 50 km of the block have committed to spend more than $200 million on exploration in the next 4 years. The Cauvery basin covers 250,000 sq km and has 28 producing oil and gas fields.

The work program is to shoot 310 line-km of 2D seismic and 81 sq km of 3D seismic data in the first 4 years of the 7-year exploration phase. Drilling is required to hold the block after the first 4 years. There is a 7-year tax holiday from the start of commercial production.