Halliburton sells EPS to Cairn for Rajasthan

Vol 17, PW 18 (24 Apr 14) Exploration & Production

Halliburton has sold two Early Productions Systems (EPS) to Cairn India to develop up to six small discoveries at its Rajasthan block RJ-ON-90/1.

In March, the block's Management Committee considered the proposal to begin production from as yet un-notified finds at Kameshwari West 8, and NR 3 and officially recognised discoveries at Aishwarya Barmer Hill, V2Y-channel, Raageshwari South 1 and NR West. Approval for the proposal is expected at the next MC meeting later this month (April).

Cairn believes the EPS will allow viable exploitation of discoveries too small to justify building permanent processing and storage structures. A Halliburton engineer explains the technology works like a ‘plug and play’ system'.

“It was designed so the operator can start taking production even during testing,” he says. In Rajasthan, Cairn will use the system as a mobile, cost-effective way to produce from smaller fields, expected to give around 1000 b/d to 2000 b/d for one to three years.

Production will be evacuated in tanker trucks. “If the field produces 1000 b/d, the company can recover the cost of the EPS in two months,” says Halliburton.

"We expect Cairn might go for a couple more systems in a few months." Cairn is pushing to monetise its Rajasthan asset as soon as possible.

Production crossed 200,000 b/d end-March and by 2018 Cairn hopes to increase it to 300,000 b/d.

LNG Summit