Cairn wants another yearآ’s extension at RJ-ON-90/1

Vol 8, PW 26 (06 Apr 05) Exploration & Production
     

Cairn Energy wants to extend the exploration period at its Rajasthan block RJ-ON-90/1 by another year.

Cairns exploration period at this block runs out on 15th May but Cairn wants to carry out more appraisal work at its new discoveries on the block and more exploration. Its not clear if the ministry will grant Cairn another extension because under the PSC, Cairns seven-year, three phase exploration period at RJ-ON-90/1 ended on 15th May 2002 and the oil ministry has already granted Cairn a three year extension to May 2005.

When the exploration period expires, Cairn must relinquish the entire block, bar the discovery areas. Cairn does not want to relinquish any portions of the block, reveals a well-placed source.

They want to retain the whole block. The PSC allows a timeframe of three years extension for appraisals.

Cairn has already taken this three-year extension. This was given to them on condition that there would be no more extensions.

Luckily, the ministry is also sympathetic and recognises that the new discoveries need to be appraised. Since theyve made more discoveries it is logical that they should be appraised.

At the most they would need six months. One year is not necessary.

Theres no monsoon or bad weather conditions that will come in the way in Rajasthan. Cairn committed the following additional work when applying for its three-year extension to May 2005.

Acquire, process and interpret 600-km 2D seismic Acquire an additional 100-sq km 3D seismic over the Saraswati discovery Drill three wells each to a depth of 2500 metres DGH officials insisted on an optional fourth well when approving the extension.

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