HIGHLIGHTS
Rajasthan Resource Base
- Rajasthan potential resource for the block is now estimated to be 6.5 billion barrels of oil equivalent (boe) in place
- Exploration upside has increased. Prospective resource base now estimated at 2.5 billion boe in place
- Discovered resource base increased from 3.7 to 4 billion boe in place
- Resource base provides a basis for a vision to produce 240,000 barrels of oil per day (bopd), subject to Government of India (GoI) approval and additional investments
Rajasthan Development
- Train One currently producing ~20,000 bopd
- Trains Two and Three at the Mangala Processing Terminal (MPT) to be ready in Q2 CY 2010
- The entire pipeline section from MPT to Salaya to be commissioned in Q2 CY 2010
- Mangala production expected to ramp up to the currently approved plateau rate of 125,000 bopd in H2 CY 2010
- Sales arrangements in place for 143,000 bopd with four refineries, MRPL, IOC, Reliance and Essar
- Development drilling at Mangala indicates production potential of 150,000 bopd subject to GoI approval and additional sales arrangements
A comprehensive review of the resource potential in the block has been carried out by Cairn India through the application of innovative technologies and advanced geoscience. In addition, DeGolyer and MacNaughton have conducted an independent estimate of reserves and contingent resources, and have also reviewed the majority of the leads and prospects in prospective resources. Their work is in line with the CIL estimates.
The Rajasthan potential resource is now estimated to be 6.5 billion boe in place. The resource in Mangala, Bhagyam, Aishwariya (MBA) and other fields has increased from 3.7 to 4 billion boe in place. The Fatehgarh Formation in the MBA fields hold 2.1 billion boe in place of which the Proved and Probable recoverable resource base is over 1 billion barrels, including an Enhanced Oil Recovery (EOR) potential of over 300 million barrels (mmbbls). EOR trials are currently underway with a ten well pilot programme.
The 22 other fields (including the Barmer Hill Formation) are estimated to hold ~1.9 billion boe in place of which the gross recoverable resource is estimated to be 140 million boe. Evaluation work is underway for these fields. The recently successful hydraulic stimulation test in one of the Raageshwari Deep gas wells encourages us to replicate this in the Barmer Hill Formation. A pilot hydraulic fracturing programme in the Barmer Hill is planned in 2010. A Declaration of Commerciality has been submitted for the Barmer Hill Formation.
The exploration upside is now estimated at 2.5 billion boe in place. Detailed basin re-evaluation through re-analysis of well data, reprocessing of seismic data and updated understanding of petroleum systems has resulted in a significant growth in the exploration portfolio, with the gross risked prospective recoverable resources increasing from 35 to 250 million boe. The Tukaram-2 well is currently being drilled to test the potential to extend known hydrocarbons from the Tukaram–1 discovery.
The current estimate of the resource base in Rajasthan provides a basis for our vision to produce 240,000 bopd from the block, subject to regulatory approvals and additional investments.
The current Mangala production of ~20,000 bopd is being processed through Train One. Trains Two & Three with a combined capacity of 100,000 bopd is targeted for completion in Q2 CY 2010. The pipeline from MPT to Salaya will be commissioned in Q2 CY 2010. Work on the final delivery infrastructure to each buyer is also nearing completion. The crude production from Mangala is expected to ramp up to the currently approved plateau of 125,000 bopd in H2 CY 2010.
Sales arrangements for 143,000 bopd (two PSU buyers and two private sector buyers) set a clear roadmap for aligning sales volume with production ramp-up. In addition, discussions are underway with PSU refiners as well as refiners in Special Economic Zones and overseas, subject to GoI approval.
Results from the ongoing development drilling campaign in the Mangala Field confirm the excellent reservoir quality of the Fatehgarh Formation, and support an increase in the production potential to 150,000 bopd, subject to GoI approvals and additional sales arrangements.
This is in line with our strategic focus on Rajasthan to maximise reserves, production and ultimately value to all stakeholders.
Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said:
“The increase in the Rajasthan resource base supports our vision of greater production potential in the Barmer basin.
We remain committed to working with the Government of India, Government of Rajasthan and ONGC to further explore and develop this resource in the most optimal manner to secure the energy needs for our nation.”
