Cairn India Ltd, along with its partners is set to invest Rs 3,240 crore in the Ravva fields in the Krishna-Godavari Basin, for drilling 20 developmental wells and for setting up related infrastructure, as the oil and gas production is dwindling from the existing wells.

Cairn India Ltd has approached the Ministry of Environment Forest and Climate Change seeking necessary clearances for the proposed project.

According to the minutes of the meeting by the Expert Appraisal Committee under the Ministry, the proposal was approved as far as Coastal Regulation Zone (CRZ) is concerned.

“In order to enhance the hydrocarbon production within the already approved capacities, Cairn India Ltd on behalf of Ravva JV proposes the following oil and gas developments to produce contingent hydrocarbon resources available in Ravva field — drilling of 20 developmental wells: 6 from new RI Platform and 14 from existing platforms... Drilling of 6 nos. of exploratory/appraisal wells to assess presence of hydrocarbons in identified pockets..

“The cost of the above proposed oil and gas development is estimated to be approximately Rs 3,240 crore,” the EAC said in the minutes of the meeting held last month.

According to the company’s annual report of FY 16, the Ravva fields produced 18,602 barrels of oil equivalent per day (BOEPD) in 2016-17 against 23,845 BOEPD in FY 16.

Cairn India officials did not respond to the mail seeking additional information.

The Ravva field (PKGM-1 Block), located in the shallow offshore area of Krishna Godavari Basin, has completed 21 years of successful operations with Cairn India as the operator with 22.5 per cent participating Interest.

Exploration, development and production in the block are governed by a PSC that runs until 2019. The production sharing contract is in partnership with ONGC, Videocon and Ravva Oil Singapore.

Currently, there are eight unmanned offshore platforms and a 225-acre onshore processing facility at Surasaniyanam in East Godavari of Andhra Pradesh which processes natural gas and crude oil produced from the field, the annual report said.

Over the years due to ageing of the field, production of oil and gas has declined. Though the onshore processing facility has an approved capacity to produce 50,000 BOPD (Barrels of Oil Per Day) crude oil and 2.32 MMSMD (million standard cubic meters per day) of gas, it is currently producing approximately 22,000 BOPD of crude oil and 1.44 MMSCMD of natural gas, the minutes added.

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