New Delhi, Sep.11 (ANI): The year 2012 has been an exciting year for Cairn so far. Crude oil production from the Rajasthan block touched 175,000 barrels of oil per day from the Mangala, Bhagyam, Raageshwari and Saraswati fields in Rajasthan block.
In less than three years since commencing production, Cairn reached a significant milestone of 100 million barrels cumulative oil production from the Rajasthan operations.
During the year, Cairn also carried out a comprehensive review of the resource potential in the Rajasthan block.
The resource base for the block is now estimated to be 7.3 billion barrels of oil equivalent in-place - an increase of over 11 percent.
The high exploration potential of the Block is evident from the fact that more than 100 prospects and leads have been identified.
Ongoing exploration is an integral part of petroleum operations in any block and also consistent with international practice.
The Company believes that an expeditious execution of such an exploration programme will create value, enhance energy security for the nation and deliver significant additional financial benefits for the government.
The overarching preamble to the New Exploration Licensing Policy is to maximise domestic production and to reduce India's import dependency. To this end, we continue to actively engage with the government and are confident of their support
The polymer phase of Enhanced oil recovery pilot project in the Mangala field has been successful. We have initiated the process to realize the full-enhanced oil recovery potential.
Optimal performance of the processing and pipeline infrastructure in Rajasthan and Gujarat continues to ensure safe and consistent delivery of crude oil.
The Ravva and Cambay fields continue to create enduring value.
The Ravva field demonstrates the success of applying innovative ideas and technologies. To date, the field has produced more than 245 million barrels of crude oil and 300 billion cubic feet of gas - double the original estimates!
The Cambay field is an example of optimal asset utilisation. In our efforts to optimise infrastructure usage, the spare capacity at the Cambay field is now being utilised to increase asset value by processing third party gas.
The Government of India, Government of Rajasthan and our Joint Venture partner, ONGC, receive more than 80% of revenues from the Rajasthan Block by way of profit petroleum, royalties, cess and taxes. In a single year, Cairn reduced the nation's oil import bill by USD 6 billion and contributed USD 2.4 billion to the national exchequer.
The innovative geological studies aided by 3D seismic data led to two discoveries in the frontier Mannar basin off Sri Lanka. These are the first ever discoveries in Sri Lanka, which helped establish a new hydrocarbon province. Cairn has now entered the second phase of exploration and intends to commence the next exploration drilling campaign in mid-2013.
The onshore block in KG basin had its second consecutive discovery, Nagayalanka SE-1, helping establish an in-place resource base of around 550 million barrels of oil equivalent.
Based on the revised estimates, the total Rajasthan resource base now supports a potential production of 300,000 barrels of oil per day, subject to approvals from the Government of India and our joint venture partner, the Oil and Natural Gas Corporation Limited (ONGC) and further investments.
Such a production level is equivalent to more than 35 percent of India's current crude oil production, which will help reduce the annual import bill by over USD 10 billion and contribute annual revenue of USD 5 Billion to the Government. .
Over the next two years, Cairn envisages net capital expenditure of USD 2 billion. With the expected approvals, Cairn plans to invest USD 600 million in Rajasthan exploration.
Following initial success in Sri Lanka, Cairn is further expanding its international footprint: we have now successfully concluded a new acquisition in South Africa.
This is a step forward in achieving the company's strategic goal of growing its resource base by acquiring exploration and appraisal assets not only in India but also outside Indian sub-continent.
The support of the Government of India, the state governments, joint venture partners, business partners and local communities has been a key enabler. *(ANI)
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