NEW DELHI: CairnIndiahas pegged its Krishna Godavari (KG-ONN-2003/1) block at about 550 million barrels equivalent of in-place oil and gas.
Sources said that these are CairnIndianumbers and the prospects have been reviewed independently, not by the Directorate General of Hydrocarbons (DGH). If proven, this would be higher than Ravva fields whose entire reserve was estimated at 400 million barrels equivalent of oil and gas. Ravva fields have already produced more than 220 million barrels.
Global petroleum consulting company DeGolyer and MacNaughton is doing the reserve certification work for the East Coast onshore find.
The company said that it was still in the process of operating the well and was looking to see how it can stimulate the wells as the reservoir is relatively tight. “If it is successful, we might perhaps expect something like a 10 per cent recovery. However, it is early days yet,” sources said.
Asked if giving the assessment and defying DGH’s mandate was right, sources said the company is also required to disclose information according to SEBI regulations. These numbers are not on behalf of the joint venture or DGH. Though, these numbers are disclosed to them (joint venture partner and DGH), these are yet to be endorsed by them.
The consortium partner in the block is ONGC, which has 51 per cent stake, the remaining is with Cairn and its subsidiary. Cairn is the operator of the block.
Cairn aims to drill some more appraisal wells to decide on the commerciality of the project.
Recently, Cairn had announced its second successive discovery Nagayalanka-SE in the block. The Nagayalanka well was spud in November last year as an exploration well, to test the hydrocarbon potential of the Golapalli sands.
The extended second phase of exploration for the block ends in August.