Cairn to spend $300m on RJ-ON-90/1 exploration

Vol 17, PW 23 (03 Jul 14) Exploration & Production

Cairn India will spend around $300m of this year’s more than $1bn budget at RJ-ON-90/1 to drill 40 exploration wells across the producing Mangala, Bhagyam and Kameshwari oilfields.

"Mangala and Bhagyam are to the north of the block," says a senior Cairn source. "Now we plan to move towards the south, towards Kameshwari.

" Cairn will drill exploration wells in the northern area to depths between 1400 and 1800 metres; in the south they will be drilled to between 2200 and 2500 metres. Some wells might be drilled even deeper to 3000 metres.

Each well should take 15 days to complete. "Another 15 or 20 days might be needed for testing.

There could be multiple zones of interest.” Cairn will target the Fatehgarh Sands, Barmer Hill, Dharvi Dungar and other formations.

"Most of our oil production comes from these formations," we hear. Cairn believes the southern part of the Rajasthan block is more gas prone.

Two 1000-hp Weatherford rigs and one 1000-hp COFOR rig already on hire will be deployed. Halliburton is also set to mobilise two 600-hp rigs in July to drill 90 ‘firm’ and 6 ‘optional’ wells under a $230m integrated contract.

Cairn is planning more than 1000 wells at RJ-ON-90/1 over the next five years to increase production from 200,000 b/d to 400,000 b/d.