Cairn India may spend `13,000 cr on KG-Basin block
Cairn India may spend Rs 13,000 crore in developing an oil and gas block in Krishna-Godavari Basin over a period of time even as it geared up to undertake drilling of 64 exploratory and appraisal wells in that block.
The oil and gas major has sought permission to prepare Terms of Reference for undertaking drilling of the wells in the block- KG-OSN-2009/3 in the Bay of Bengal, according to minutes of meeting of Expert Appraisal Committee under the Ministry of Environment and Forests.
Cairn India had earlier said it declared force majeure of two of its oil and gas blocks including KG-OSN-2009/3 due to the objections raised by the Ministry of Defence for taking up exploratory works.
However, the company, last year, got necessary clearance from the ministries concerned.
“Cairn Energy India has proposed for exploratory / appraisal Drilling ( 64 wells) in KG-OSN-2009/3 Block in Offshore KG Basin, Prakasam and?Guntur Districts, Andhra Pradesh,” the EAC said.
Exploratory drilling is carried out in the identified sub-surface structures to find out if there is presence of hydrocarbons in commercially exploitable quantities.
The cost of the project is Rs 13,000 crore, as per the minutes.
The committee noted that public hearing is not required as project site is located in off-shore.
The KG-OSN-2009/3 offshore block in Bay of Bengal along the coast of Andhra Pradesh is spread over an area of about 1,988 sq km.
“Upon completion of interpretation of the new seismic volumes, planning for a four well drilling campaign will begin. Site survey data acquisition, required to complete drilling planning, is expected in mid-2015,” Cairn India said during third quarter results announcement.
The KG-OSN-2009/3 Block was awarded to Cairn India on 30 June 2010 as part of the NELP-VIII round for exploration of hydrocarbons and production.