Cairn India-led Ravva JV is set to increase its production in Krishna-Godavari basin from 38,000 barrels of oil equivalent per day (BOEPD) to 54,000 BOPD after successfully drilling an offshore horizontal well, sources close to the development have said.
"Drilling commenced in Ravva field in January and three wells have already been completed...In addition to the successful horizontal well, the other two wells also tested at rates higher than predicted," the sources told PTI today.
The horizontal well tested successfully to a flow rate of over 16,000 BOPD, they said.
Cairn India and Ravva JV are confident of considerable reserve potential of the field and producing more oil from the Andhra Pradesh block before the expiry of its production sharing contract (PSC) in 2019, they said.
Ravva, a major JV oil field, has one of the lowest operating costs in the world. Its direct operating cost per barrel is about $2.1, according to Cairn.
The Ravva JV, operator of the offshore Ravva block in the east coast of India, is planning to commence drilling new wells and work over wells from August, the sources indicated.
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"The campaign shall comprise three firm wells and two optional wells," they said.
Cairn India held a series of meetings recently with partners ONGC, Videocon and Marubeni-controlled Ravva Oil to discuss the work programme and budget for fiscal 2011-12.
According to industry analysts, the drilling of each new infill and work over well could cost about $11 million.
According to Cairn, the average gross production from the Ravva field in Q3, FY11 was 39,434 BOEPD (comprising an average oil production of 29,667 BOEPD and average gas output of 59 million standard cubic feet per day (mmscfd)).
Cairn is the operator and has a 22.5% participating interest in the Ravva field.
State-run exploration giant ONGC has a 40% stake and Videocon a 25%, while Marubeni-owned Ravva Oil (Singapore) owns 12.5% stake in the field.