Cairn begins drilling in new blocks

The company brought Southern Cross, a deep-water semi-sub rig, to the Krishna-Godavari basin for exploring the oil and gas resources. "The exploration works undertaken in the mid seas of K-G 05/6 in the first week of December are progressing on the expected lines,"said the sources in Cairn Energy.

"It takes 40 to 45 days for the company to drill an oil and gas well. If we get positive results in the first well of 05/6 block, the company will continue its operations at this rig for some more days," they added.

Cairn Energy received the licence for exploration and production of oil and natural gas in Rawa block, K-G 05/06 block and K-G DWN-98/2 blocks in 1995.

In Rawa block, Cairn Energy has a stake of 22.5 per cent while Oil and Natural Gas Corporation (ONGC), Videocon and ONGC Singapore have 40 per cent, 22.5 per cent and 15 per cent of stake respectively. Cairn Energy has taken up the oil and gas extraction works on its own from the eight oil and gas platforms of the Ravva block.

"At present, Cairn Energy is generating 2.1 million metric cubic meters of gas and 50,000 barrels of crude oil a day in the Ravva block wells. The company intends to start the production in some new wells to maintain the same level of production till 2005," the sources said.

"Cairn Energy completed the exploration works in the K-G DWN-98/2 block a few years ago. If the company plans to produce oil and gas from this block, the company has to invest about Rs 10, 000 crore. At present, the company is chalking out plans to mop up the Rs 10,000 crore investments," the sources informed.