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Cairn India strikes oil in KG basin onshore field

03rd December 2013

Cairn India discovers oil reserves in KG basin onshore field KG-ONN-2003/1, plans to invest around USD 765m to start oil production in 2017

Onshore oil pump
Cairn India hopes to extract 40 million barrels from its Nagayalanka SE onshore fields

Cairn India has discovered oil reserves at its Krishna-Godavari (KG) basin onshore field KG-ONN-2003/1 on the east coast of the BRIC country, The Financial Express reported. The onshore field is estimated to produce up to 10,000 barrels of oil per day effective 2017. The KG basin oil reserves estimation is based on the assessment of three discovered wells in Nagayalanka SE, 1Z and 1Z ST onshore fields.

 

According to the declaration of commerciality (DOC) documents submitted to the Directorate General of Hydrocarbons (DGH), only 40 million barrels of oil can be recovered from the oil reserves of 320 million barrels. The recovery factor of Cairn’s KG basin is up to 15 per cent as the oilfield has a tight reservoir with low permeability. Additionally, the company will be required to use hydraulic fracking techniques to drill the oil wells.

 

Earlier, Cairn India aimed at investing USD 78m to ramp up exploration in KG basin. Following the recent discovery of oil, the company now has plans to invest USD 600m for drilling 20 wells in the next four years. Cairn will also invest an additional USD 165m for developing infrastructure to produce oil.

 

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