Vedanta to revive CB-OS/2 with 45 well plan

Vol 27, PW 13 (27 Jun 24) Exploration & Production

Vedanta is hoping to arrest rapidly declining production at its 174-sq km Cambay offshore block CB/OS-2 with an ambitious drilling programme.

Vedanta plans to drill 45 wells and install two additional platforms and an FPSO (Floating Production Storage and Offloading) facility at the block. On June 15 (2024), Vedanta filed a Pre-Feasibility Report (PFR) with the environment ministry to apply for Terms of Reference for an EIA ahead of expected environmental clearance for the programme.

According to the 40-page PFR prepared by Vedanta in May 2024, the company has budgeted Rs4246cr ($509m) for the new campaign, lasting eight to ten years. Of the 45 proposed wells, 25 will be production wells and 20 injection wells.

"This programme will help us arrest declining production," says a well-placed source. "The block is presently producing around 7000 b/d, but there is a decline of 1.5% every month."

In January 2024, Vedanta announced a sharp drop in oil and gas production across its assets in India, with the most significant decline at the Lakshmi, Gauri, and CBX fields at CB-OS/2 where production fell 43% from 13,308 b/d to 7557 b/d at the block, which has been producing for more than 20 years. "We have scheduled decline management and growth initiatives because, without these efforts, the field's economic performance will suffer," says the PFR.

In plain speak, decline management is designed to address challenges at wells and stimulate producing zones. By drilling new wells and setting up new facilities, Vedanta believes it can produce a staggering 55,000 b/d of oil and 4.95m cm/d (175m cf/d) of gas.

Also expected are some new discoveries. "Vedanta's proposed development and production drilling of new wells will possibly result in the discovery of hydrocarbons and in that case, will help in reducing India's dependence on imports," adds the PFR.

In addition, Vedanta plans a new 50-km subsea pipeline network to connect old and new platforms. Also planned is a subsea pipeline from Vedanta's CB/OSDSF/AMBE/2021 block to an old platform to transfer process fluid.

Vedanta (40% and operator) shares CB-OS/2 with ONGC (50%) and Invenire Energy (10%).

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In 2002, gas production began from the Lakshmi gasfield. Gauri was discovered in 2001 and began producing gas in 2004. Well fluid received from three offshore platforms (Lakshmi Alpha, Lakshmi Bravo and Gauri Alpha) through a 36-km sub-sea pipeline is processed at an onshore terminal in the Hazira region. Processed oil is then transported by truck to the Adani Hazira Port unloading terminal. Vedanta adds in the PFR that the average block production over the last three years was 9533 b/d. "Facing an environment of increasing consumption, static reserves, increasing imports and increasing costs of crude as well as the decreasing value of the Indian Rupee vis-à-vis the US Dollar, it follows that any accretion of hydrocarbon reserves in the country is welcome," says the PFR.

Vedanta to revive CB-OS/2 with 45 well plan

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