The Hindu Business Line : Cairn submits commercial viability of discoveries in Rajasthan block

Rajasthan discoveries
Northern Appraisal Area may prove to be a high prospect region for Cairn leading to more discoveries. The potential of the area is estimated to be in excess of 200 million barrels of oil.

Pratim Ranjan Bose

Kolkata, Nov. 15

Cairn India has submitted the declaration of commerciality for the three discoveries in the Northern Appraisal Area (NAA) of Rajasthan block (RJ-ON-90/1) for approval of the management committee under the Directorate General of Hydrocarbons. The company has also proposed a development area in NAA.

According to sources, earlier this month, an operating committee of Cairn and ONGC has validated the commercial viability of the discoveries and proposed development of the prolific onshore field in the Rajasthan basin. The declaration is submitted before the DGH.

It may be mentioned that Cairn has made two discoveries Kameswari West — and Kameswari West — 3 and Kameswari West 6 in NAA between late 2006 and mid-2007. The discoveries were reportedly made after the expiry of the extended time period of the exploration licence till November 2006, as was previously granted by the DGH.

The company, however, cited the severe flooding in Rajasthan and the consequent disruption in work programme as the reasons behind its failure to complete work within the scheduled time frame.

Putting all speculation — about the validity of the discoveries — at rest, the Centre had granted Cairn another extension of six months in May this year to explore the potential of the region by virtue of an appraisal programme prepared in consultation with the DGH.

Accordingly, Cairn had carried out further drilling and made another discovery Kameswari West 6 and prepared a declaration for the commerciality of all the three discoveries in NAA.

According to sources, Northern Appraisal Area may prove to be a high prospect region for Cairn leading to more discoveries. The potential of the area is estimated to be in excess of 200 million barrels of oil.

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