Cairn starts exploration drilling programme in Barmer field

Cairn starts exploration drilling programme in Barmer fieldCairn India on Monday started its exploration well drilling programme in its Barmer oil field in Rajasthan.

The explorer has plans to invest $15 million in drilling a total of three exploration wells in the field during the current fiscal in a bid to raise production.

The oil block is currently producing nearly 175,000 barrels of oil per day (bpd), and the company aims to attain an output of 200,000 bpd to 215,000 bpd by the end of current fiscal. This will eventually help Cairn India, a joint venture between Cairn and ONGC, to realise the production potential of 300,000 bpd from the block.

In a statement, the joint venture added, "This is pursuant to the clarity in policy by the Government of India (GoI), allowing for exploration operations in development blocks."

On February 14, a block oversight committee had allowed Cairn India to drill three exploration wells this fiscal. The permission followed the Petroleum Ministry's announcement that the Government had decided to let explorers to drill wells in mining lease areas, which previously was restricted.

By March 2014, the company aims to drill 30 exploration wells and a similar number in the following year.

Cairn owns 70 per cent stake in the Barmer block, while the remaining 30 per cent stake is owned by ONGC.