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Cairn India to invest nearly USD 78m in KG basin

11th November 2013

Cairn India optimistic about potential gas discovery in Krishna-Godavari (KG) basin, plans nearly USD 78m investment to strengthen presence in eastern region

Cairn India expansion plan
Cairn India plans to invest nearly USD 78m in Krishna-Godavari basin over the next three years

Oil and gas producer Cairn India is expected to invest nearly USD 78.9m to ramp up exploration activities in Krishna-Godavari basin over the next three years, The Hindu reported.

 

The company has received approval from the defence ministry to commence exploration on 65 per cent of the offshore block while the remaining 35 per cent have been declared as a ‘No Go Area’.

 

Cairn India and its JV partners ONGC and Videocon are planning to drill two deep exploration wells for gas in the Ravva field. Cairn is expected to allocate USD 30m of the total investment for the drilling project, estimated at a total cost of USD 80m.

 

According to Cairn India CEO P. Elango, the company also sees oil potential in Nagayalanka onshore block. The company will declare the commercial viability of the onshore well and file a field development plan (FDP) by next year.

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