Oil India optimistic about its three Rajasthan blocks

Vol 9, PW 8 (28 Jul 05) Exploration & Production

Cairn Energy is not the only company to focus on Rajasthan.

Oil India, Indias junior state-owned explorer, is also bullish about this desert state, where it has three exploration blocks. Take NELP-II block RJ-ONN-2000/1, where Oil India has begun Phase-II of the exploration period following the end of Phase-I on 17th July.

Oil India is 100% owner of this 2535-sq km block, near the border with Pakistan. Border tensions with Pakistan means the Petroleum Exploration Licence was delayed for longer than usual, as it had to be cleared by the defence and home ministries.

In Phase-I, Oil India easily met its commitment to reprocess 350-km old 2D and acquire, process and interpret 250-km fresh 2D. Phase-II commits Oil India to drill one well to a target depth of 2500 metres, which it plans to do by the end of December this year.

Oil India is also operator with 70% participating interest at block RJ-ONN-2001/1 where ONGC holds the balance 30%. Oil India is in Phase-I of the minimum work programme where it has committed to acquire, process and interpret 250-sq km 3D and drill three wells.

Oil India is optimistic about this block and believes it will exceed its minimum work commitment by shooting an additional 63-sq km of 3D. More, it has already identified two of the three well locations for drilling, one of which will be in the 3D area.

One well will be drilled this year and two the following year. If Oil India begins Phase-II, it must acquire, process and interpret 100-sq km 3D and drill one well.

In Phase-III it must drill one exploration well. Finally, Oil India also operates block RJ-ONN-2002/1 where it holds 60% and ONGC 40%.

Phase-I commits it to acquiring, processing and interpreting 150-km 2D seismic but Oil India has already exceeded this by acquiring 300-km 2D. In Phase-II one well will have to be drilled.

Ditto for Phase-IIII plus 100-km 2D. (Back)