Expect good news from the Krishna Godavari
Keep your eyes firmly on India's Krishna Godavari basin offshore Andhra Pradesh in the next few weeks for the first sign of good news.
Cairn Energy and ONGC are both mid-way through a deepwater exploration programme, which if it succeeds, could herald a stampede of international oil majors to India's east coast, something the DGH has long predicted. "There are two more Ravvas out there," a senior geologist tells Petrowatch, "The structures are very promising." Cairn refuses to divulge anynew information about its drilling programme at D5 until it gets "some results".
But Cairn has confirmed that its drillship 'Energy Explorer' is sitting in the north-east of deepwater block KG-DWN-98/2 at prospect 'N' and that since April 12th last year when it signed the PSC, it has acquired, processed and interpreted 1,500 sq km of 3D and hopes to drill 1 or 2 wells within contract year 1. A source reveals that it has promised the oil ministry an announcement before 31st March.
ONGC's Sagar Vijay drillship is likewise anchored nearby at prospect KD-AB, on the same structure as KD-AA, which on 18th November flowed 400,000 cm/d through a half-inch choke. On 23rd January ONGC chief Bikash Bora told Press Trust of India that the corporation would spend $700m to develop the field.
