In order to maintain the current peak production level, Cairn India plans to drill 48 wells at a cost of less than $100 million on the Mangala oilfield in its Rajasthan block.
Mangala is the biggest among the 26 oil and gas discoveries Cairn has made in the Barmer basin block in Rajasthan.
In a letter to the block oversight committee, the firm said production performance analysis, reservoir modeling and subsurface studies showed that by drilling up to additional 48 infill producers (well) the current plateau could be further extended and reserves increased.
Oil and Natural Gas Corp (ONGC), which is the partner of Cairn India, approved the drilling programme, Cairn said in the letter to the Management Committee.
The new wells would be within the approved FDP cost of $2.367 billion. It may be recalled that Cairn India earlier received approval from the MC for a $2.367 billion field development plan in Mangala to produce a maximum of 150,000 barrels of oil per day (7.5 million tonne a year) till 2020.
Mangala field has been producing at the plateau rate of 150,000 bpd since 2012. Till date, 109 producers wells and 48 injectors wells have been drilled out of the approved 162 wells (including 111 producers wells and 51 injectors).
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