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In the 10th edition of the oil and gas blocks auction, Cairn India wants to bid and win the area of the Barmer block in Rajasthan which it had surrendered to the Government.
“We have got the data. We have got the infrastructure. We would definitely look at this area besides other areas on offer,” P. Elango, whole-time director and CEO, Cairn India, told Business Line .
Cairn has surrendered almost two-third of its prolific, mainly oil-producing Barmer block to the Government, according to the existing exploration norms. But subsequently, based on assessment, the company believes the block may hold more oil reserves than initially assessed.
To exploit these reserves, it has been seeking the Government’s permission to explore the surrendered area of the block.
ONGC is Cairn’s joint venture partner in the block. The block today has 3,110 sq km area and is producing close to 190,000 bpd. The joint venture aims to close this fiscal at a production rate of 200,000-225,000 bpd from the block.
On Cairn’s bidding strategy, he said: “It’s a competitive bidding. We would participate in (it) irrespective of the framework. Besides, the bidding strategy is decided based on the data.”
“There is no doubt that the production-sharing contract regime is very appropriate, the risk is divided here. But there is also an element of administration of contract. The capital involved in onshore is not very huge, so it’s easier for the operators to work under the PSC. But for the deep water, the PSC may not be appropriate,” he explained.
“As long as you know the framework, you take that into account and then the bidding strategy is decided,” Elango said.
On what makes the 10th edition of auctions exciting, Elango said: “In the past, we would have looked at the blocks only from a conventional point. But, now, we would have to look at it on integrated pattern. For the first time, India is offering blocks where you can explore for both conventional and non-conventional resources.”
Asked if Cairn will go alone or with a partner, he said: “A decision on this will be based on what we decide to bid for.”
richa.mishra@thehindu.co.in
siddhartha.s@thehindu.co.in
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