Cairn's deepwater work programme for 2002-03

Vol 6, PW 2 (27 Mar 02) Exploration & Production

EASTERN OFFSHORE DEEPWATER block KG-DWN-98/2 is a showpiece in Cairn Energy's Indian portfolio.

Cairn struck both oil and gas at four prospects in this exploration block last year and has now drawn up an ambitious work programme beginning 1st April. It consists of an appraisal work programme on each of the four prospects where Cairn has struck oil and gas - 'N', 'Annapurna', 'Kanaka Durga' and 'Padmavati'.

We learn it will take place over an 18 to 24 month period and that its objective is to "establish commerciality and to mark the boundaries of a likely development area." The other component is an exploration work programme, which will integrate well log results into ongoing interpretation. This will be followed by mapping and identification of promising areas where 2D and 3D has already been shot.

Cairn hopes this will yield "an exploration upside potential" of the block. Does Cairn plan to drill any exploration wells Unlikely.

A source tells PETROWATCH the focus is on interpreting and evaluating the results of exploration wells drilled last year, and on determining their commercial value by "preparing, costing and phasing the possible development scenarios" for each or all the prospects. Plans are also on to complete the gas and oil marketing study on the eastern and southern coasts begun in 2001-02.

See below for how much Cairn has budgeted for the work programme: Expenditure head Amount Exploration $234,000 Appraisal of 'N' gas discovery $510,000 Appraisal of 'Padmavati' field $510,000 Appraisal of 'Kanaka Durga' field $510,000 Appraisal of 'Annapurna' field $510,000 General appraisal ('Phase-I') $1,180,000 Total general and administrative costs $701,000 Total expenditure $4.155m