Hardy renews effort for extension at CY-OS/2

Vol 8, PW 17 (17 Nov 04) Exploration & Production

Hardy Exploration has renewed efforts to secure an extension at its offshore Tamil Nadu block CY-OS/2 despite being asked to relinquish the block in April 2004.

Hardy and its partner GAIL have sent several letters to the oil ministry pleading that an extension is required to finish the work programme left incomplete due to the 22-month delay blamed on licencee ONGC. On 4th October, Hardy wrote another letter to the oil ministry repeating its case for a 22-month extension, promising to do more exploration work than originally committed.

The CY-OS/2 consortium is keen to retain the block, writes Hardy. After discussions GAIL, the partners have mutually agreed to further increase the committed work programme in exploration Phase-III.

This additional work programme includes shooting 300-sq km 3D and drilling one more exploration well. The minimum work programme committed in the PSC during Phase-III provided for one exploration well only.

Continues Hardy: Our total committed work programme represents a very significant enhancement over the PSC minimum work programme of one well and demonstrates the JVs commitment in seriously taking up exploration activities in the block. Hardy says it has an experienced technical team, which has, since inception, worked extensively on the geology of this block, developed leads/prospects and acquired an in-depth appreciation of the physical/logistical issues involved in drilling in the Cauvery basin.

Hardy said the fresh work programme plans for Phase-III would require 22 months to complete because of the additional drilling and because of the intervening weather windows in the Cauvery basin, during which seismic and drilling operations have to be curtailed.

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