News Detail

• Unable to ramp up output from the Barmer oil block in Rajasthan pending regulatory approvals, Vedanta Group firm Cairn India has now sought oil secretary GC Chaturvedi’s intervention to start oil production at Bhagyam oil field, get budget approvals for this financial year and regularise crude delivery pipelines.Cairn India, operator of the block with 70 per cent participating interest, targeted to drill crude from Bhagyam field in the Barmer block from October. But, it is yet to get a go-ahead from the petroleum ministry. At the same time, the government has not approved the work programme and budget for 2011-12 for the block.
• Cairn India had written to oil secretary GC Chaturvedi last week, seeking the latter’s indulgence on these issues. In March and June, Cairn India informed multi-departmental management committee of the block headed by upstream regulator DGH that it was ready to commence production at 20,000 barrels per day (bpd) from Bhagyam field in Barmer block, beginning October. The output could double by November.However, DGH and ONGC — Cairn India’s partner in the block — wanted a third party report, certifying adequacy of surface facilities to process additional crude oil from Bhagyam. Cairn India, the operator, submitted a report done by international firm Technip that was technically reviewed by DGH.
• The management committee is yet to give a go-ahead for Bhagyam production. The operator cannot drill hydrocarbons unless the management committee approves it.“Bhagyam development is on track and is ready to commence production in the fourth quarter of 2011, subject to government approval,” Cairn India said in a statement on October 20. At the same time, the management committee in its meeting held on June 10 agreed ‘in-principle’ to a work programme and a budget of $834.616 million for RJ-ON-90/1, popularly known as Barmer block. These budgets are yet to get clearance from the petroleum ministry. Cairn India is carrying on operations without the approval of work programme and budget for 2011-12.
• At present, the Mangala field in same block is producing 125,000 bpd for the past 15 months. The government had earlier allowed supply of crude oil to Reliance Industries (RIL) and Essar Oil. In an unrelated development, Cairn India on Monday said a third well in its Sri Lanka block SL-2007-01-001 has turned out to be a dry one.The explorer has completed the first phase of the exploratory campaign in the block. “This programme resulted in two successive gas and condensate discoveries — CLPL-Dorado-91H/1z well and CLPL-Barracuda-1G/1 well. The third well, CLPL-Dorado North 1-82K/1, was plugged and abandoned as a dry hole on December 14,” a company statement said.

Source