Cairn outsources E&P at KG-OSN-2009/3 block

Vol 20, PW 19 (15 Jun 17) Exploration & Production

Two years after unsuccessfully trying to convince ONGC to buy its stake Cairn India has decided to outsource the management of exploration and development at KG basin shallow water block KG-OSN-2009/3.

This report learns Cairn wants to award an 'end-to-end' service contract to commercialise the block by drilling up to eight exploration wells beginning October 2017. Expect an extension to the June 15 bid deadline as interested companies are yet to receive clarifications to queries raised at a May 22 pre-bid in Delhi.

Among those in attendance were Schlumberger, Halliburton, Weatherford, Baker Hughes, SapuraKencana and Noble Energy. "This is the first time Cairn is offering such an (offshore) contract where the contractor has complete and total responsibility," says a source.

"Cairn will not even have its own man on the rig!" Cairn, we hear, will hold the selected contractor responsible for "technical evaluation, geophysical and geotechnical surveys, data processing and interpretation, integrated well-construction (including drilling, formation evaluation, fracking, well-testing and well-completion) and offshore/surface and evacuation facilities development." Also in the scope of work for the wining contractor is hiring a jack-up, helicopters and vessels. Cairn is offering a firm four-year contract plus a one-year optional extension and wants two firm and two optional exploration wells drilled in water depths of 250 metres.

If all goes well Cairn will drill an additional four wells, so eight in total.