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Cairn Energy seeks partners to increase India exploration
Wednesday, 11 December 2002, 20:30 IST
NEW DELHI: The Indian subsidiary of British power major Cairn Energy is scouting for partners in the country and abroad to step up exploration in the blocks it holds in India.
Cairn Energy (India) has met with success in all its six blocks off the east and west coast and Rajasthan, either explored alone or through joint ventures.
During 2001, Cairn completed a very successful programme to hit upon gas and oil in 9 of 11 exploration wells.
"As most of our blocks are deep water, which require heavy investment, we are keen to bring in partners for commercial exploitation of our discoveries and bring the gas and oil to consumers," a senior Cairn Energy official said.
Of the six blocks, the company has 100 percent stake in two -- one each in the Krishna-Godavari basin and Rajasthan, both of which are being assessed for their reserves.
The remaining four blocks are in joint venture, with Cairn holding equity stake of between 22.5 percent and 75 percent.
The Ravva field in the east coast, where the company holds 22.5 percent stake, is currently producing 50,000 barrels of oil per day, accounting for eight percent of India's annual production.
It is also producing about 56 million standard cubic metres of gas per day.
Two other blocks offshore in the Krishna-Godavari basin on the east coast have proved to contain oil and gas.
On the west coast, Cairn has stakes in three exploration blocks one of which - the Lakshmi gas field - is under development. The onshore block in Rajasthan too has proved to have oil and gas reserves through strikes in two wells, which are currently in the process of being appraised.
Cairn Energy is yet to put out a formal document inviting new partners or open a data room to start the process, the official stated. But he said that informal talks were on to find potential partners.
India's state-owned exploration major Oil and Natural Gas Corporation (ONGC) is among those that have approached Cairn India to join hands in exploration particularly in the east coast where the British company has three blocks.
"We have given expressions of interest to Cairn India for acquiring stake in four blocks, including two in the Krishna-Godavari basin and one in Rajasthan," a senior ONGC official told IANS.
However, oil and petrochemical major Reliance Industries has issued a statement denying any reported interest in Cairn Energy blocks.
"Reliance has not expressed any interest in Cairn India's exploration assets," a Reliance spokesperson categorically stated.
Cairn Energy is meanwhile in the run for the next round of exploration blocks for which the bids are to open in April.
"As our activities in India have been very successful, we will certainly be in the race for picking up more blocks under the fourth round of new exploration licensing policy (NELP)," said the Cairn official.
Producing about 27.8 million tonnes and importing about 70 percent of its hydrocarbon requirement, India has stepped up exploration activities in the last few years by giving out 70 blocks under the NELP rounds.
As a result of the exploration activities, at least 780 million tonnes of oil and oil equivalent of gas (O+OEG) have been accreted from 1998-2002 by all oil companies.
In the next five years, India hopes, further explorations will accrete 785-914 million tonnes of O+OEG, according to the petroleum ministry.
Source: IANS
Source: IANS