New Ravva gas prospect with 3.5m cm/d potential

Vol 9, PW 6 (30 Jun 05) Midstream & Downstream
     

ONGCs G-1 structure and Reliances KG basin fields are not the only possible sources of additional gas that GAIL is looking at.

Gas from a totally new pool discovered by the Ravva consortium is also in its sights. PETROWATCH learns the new pool (Late Oligocene 110, or LO 110) could see a further 3.5m cm/d gas come to market.

Better news still: it appears the new pool can produce 3.5m cm/d for a plateau period of seven years. After that the production will taper off, reveals a source.

This prospect lies in the deepwater portion of the Ravva field and is the only prospect with significant potential in the Ravva deepwater. Its also believed to hold non-associated gas and the consortium feels oil is also likely at deeper levels.

Ravva operator Cairn Energy has drawn up plans for at least two wells on this prospect. But each well will cost approximately $30m and development of the LO 110 prospect will cost nothing less than $200m because this is a deepwater prospect and only a (expensive) deepwater rig can carry out drilling.

Given the high costs, these cannot be only exploratory wells, says a source. They will have to be exploratory and development wells.

Cairn will only begin drilling when it finds a buyer for the gas. There will also have to be subsea completions as well as a surface facility.

The cost of all these are rather steep given the high price of steel and the shortage of deepwater drilling rigs. It is also doubtful if well get a deepwater rig to drill just two wells, he adds.

Even if we get one the rates will be high. Understandably, the Ravva consortium is in no rush to bring LO 110 gas to market.

Theres no point in drilling and putting up all these facilities unless we get a commensurate price. Talks have begun with GAIL.

Even if agreement is reached now on price, we learn. It will take about two and a half years to bring this prospect on production.