ONGC-Videsh Ltd (OVL) and Cairn Energy have abandoned the Tunisian exploration block after failing to discover a commercially-viable quantity of hydrocarbons.
The two companies, which had a joint operating agreement for the block, have lost around $2 million each, said W B B Gammell, chief executive of Cairn Energy.
The Tunisian block was originally awarded to Command Petroluem of Australia, which farmed out 40 per cent of its stake in the block to OVL. Command was subsequently taken over by Cairn Energy.
Though the first well spudded by Command and OVL had held out promise of hydrocarbons in the area, further studies showed that these discoveries were sub-commercial, Gammell said.
However, Gammell said the company's experience in developing the Ravva offshore oilfield in India had been a rewarding one. The field had been developed ahead of schedule in 18 months and was producing 35,000 barrels of crude oil every day, he said. Gas flaring at the field had also been considerably reduced and the field was producing around 450,000 cubic metres of gas per day, he added.
Gammell said Cairn Energy was looking forward to increasing its presence in India after the Ravva experience. Cairn has already been selected for the award of two more exploration fields in India, namely the KG O6 and CB O2 exploration blocks. The contract is expected to be signed shortly. Deep-water exploration in India was another interesting area of participation, he added.
Gammell clarified that although Cairn Energy was keen to increase its commitment to India, it would be interested only in exploration and development of oil and gas fields, and not in marketing oil products in India.
However, he said that Cairn was considering India as a prospective customer of gas discovered by it in Bangladesh. Cairn produces around 200 million cubic metres of gas per day in that country. Gammell said that Bangladesh is expected to have surplus gas for export purposes within seven years.
