Cairn Oil & Gas Secures India PSC Extension
Cairn Oil and Gas, a unit of Vedanta, has secured a 10-year extension of the production sharing contract for the Ravva oil and gas block offshore Indian state of Andhra Pradesh, it said November 6. With this extension, the PSC is now valid effective October 28, 2019, for the next 10 years.
The extension will enable the joint venture partners to recover about 13mn barrels of oil equivalent, Cairn said. In addition, the joint venture partners will invest about 78mn to drill seven wells under the revised field development plan targeting additional reserves of about 11.7mn barrels of oil equivalent.
The production of hydrocarbons started in Ravva block in March 1993. A 225-acre onshore processing facility at Surasaniyanam processes natural gas and crude oil from the Ravva. As on October 31, the field has produced 295mn barrels of oil and 418bn ft3 of gas, Cairn said.
Cairn, as the operator, holds a 22.5% stake in the Ravva block, while Indian state-owned Oil and Natural Gas Corporation has 40%. Videocon Petroleum has 25% and Ravva Oil the balance 12.5%. Ravva oil and gas block is located in the shallow offshore area of the Krishna-Godavari basin on the eastern coast of India.