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Cairn India resumes exploration campaign in KG onshore block

29 Nov 2011 Evaluate

Cairn India and its partner ONGC have resumed exploration activity in the discovered Krishna Godavari basin onshore block. Earlier in August 2010 Cairn had discovered oil and gas in its East Coast block. 

The company has started with the discovery of light crude oil in one well, which had shown a flow of 75 barrels a day of oil and 0.27 million cubic feet a day of gas. Light crude oil flows freely at room temperature and receives a higher price on the commodity markets because it can yield a higher percentage of petrol and diesel. The initial discovery has opened up a new play in the southern part of KG basin, which is one of the most established basins.

Cairn India has suffered holdup in exploration campaigns in India as it got involved with the proposed stake sale of the parent, Cairn Energy to Vedanta Resources. However, the company has overcome uncertainty as the deal inching closer to reality. After re-processing the technical data of the onshore block KG-ONN-2003/1 this well is being drilled based on the results from the first well.

Last year, Cairn had initiated a multi-well exploration drilling campaign in the block that it had won in the 5th round of the New Exploration Licensing Policy (NELP-V). Cairn already has experience in the prolific East Coast, as it is producing from the Ravva fields.

Peers
Company Name CMP
ONGC 283.95
Oil India 470.10
Jindal Drilling&Inds 540.15
Deep Industries 476.90
Asian Energy Service 306.05
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