Cairn India-led JV set to increase production in KG basin

Cairn India-led Ravva JV is set to increase its production in Krishna-Godavari basin from the current rate of 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 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 on Friday.

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 at approximately USD 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.

"The campaign shall comprise three firm wells and two optional wells."
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 USD 11 million.