Cairn ready to spend $102m at Ravva in 2004-2005

Vol 7, PW 24 (25 Feb 04) Exploration & Production

Good news for oilfield service contractors! Operator Cairn Energy is ready to spend $102m at its Ravva oil and gasfield offshore Andhra Pradesh in the financial year beginning 1st April this year.

This represents a dramatic, almost 100% increase in the amount of $53m that Cairn budgeted for Ravva in the financial year ending March 2004. Cairns Ravva budget for last year was described as an, exercise in holding the fort but the one for next year is an ambitious, forward looking exploration and development programme designed to maintain and marginally increase present production levels.

Cairn has set the following key objectives at Ravva for 2004-05: To evaluate further, the exploration potential of the Ravva Licence Area by offshore exploratory drilling and assess the remaining exploration potential in the field To optimise the, exploitation and development of the oil and gas already discovered and drill infill wells to target bypassed oil and extend the plateau production To initiate a, long-term plan of implementing a commercially viable methodology for enhancing ultimate oil and gas recovery To take up, new commercial development projects and complete ongoing projects that will facilitate safe, reliable and efficient petroleum operations and ensure that the joint ventures production targets can be achieved To build on the, Life Cycle Plan for the Ravva Asset which seeks to optimise the reservoir facility and maintenance management To secure the, Ravva asset value by operating and maintaining the onshore and offshore facilities according to a risk-based operating philosophy and industry best practices Cairns activity at Ravva this year involved completion of exploration studies carried over from 2002-03 and maintaining Ravva production levels. Cairn also "generated drillable prospects including volumetric estimates and commercial evaluation/justification of potential reserves." Also on the 2003-04 agenda were development of 3D geological models and reservoir simulation models for all Ravva production fields.