In a letter to the union oil ministry, Cairn India said a quarter of its KG basin block area falling on both sides of “no go area” is operationally not feasible and offered to surrender it to the government.
For proper and effective exploration, only 40 per cent of the original contract area of KG-OSN-2009/3 block is feasible, it wrote.
The firm further said the current area was neither “geometrical nor conducive to conduct proper and effective exploration campaign.” But it said it was prepared to “reconcile and proceed with the significantly reduced area.
It may be noted that the Cabinet Committee on Investment (CCI) cleared only a portion of KG basin blocks of Cairn as it was within the impact zone of IAF’s Suryalanka Guided Weapon Firing Range (GWFR) and Machhlipatnam launch site.
Cairn said post this clearance, 35 per cent of the block is ‘No-Go Area, which runs right through the block, leaving small portions on either side for exploration.
Of the remaining block area, 20 per cent of the area is ‘clear area’ and the remaining area is ‘High Risk Area’, where exploration activity has been permitted with certain conditions,” it said.
Thus, the firm wants its minimum work commitment cut in proportion to reduction in operationally feasible block area.
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