Cairn plans $225.8m spend in Rajasthan

Vol 16, PW 24 (27 Jun 13) News in Brief
     

Cairn India will spend $225.8m this fiscal to drill 36 firm exploration wells at Rajasthan block RJ-ON-90/1.

On June 18, the block Management Committee approved the much-awaited 2013-14 exploration budget. "This is the first time Cairn will be drilling exploration wells in development areas,” says a source.

“This follows the DGH’s February guidelines allowing such work.” Cairn will spend over $6m to drill each well.

Two wells have been carried over from 2012-13. If the 36 wells yield results, Cairn will drill an equal number of contingent wells.

But no money is set aside for these in this year's exploration budget. Cairn will also spend $110.8m on seismic acquisition and processing over the development area.

Cairn prepared the budget in April but it was cleared by partner ONGC in May, then approved by the Operating Committee and by the DGH in early June. Cairn's Mangala, Bhagyam, Aishwariya and other fields in Rajasthan are producing 175,000 b/d.