Cairn India eyes 1.3 mn tn crude oil from K-G basin

Cairn India Limited, a unit of UK-based oil explorer Cairn Energy Plc, is anticipating over 1.3 million tonnes of crude oil production from the Ravva field in the Krishna Godavari basin during the current financial year. The company currently produces crude oil and natural gas from eight platforms in the Ravva field.

In April, Cairn India produced 149,000 tonnes of crude oil and 49.71 million cubic feet of natural gas from the Ravva field as against the target of 136,000 tonnes 45.53 million cubic feet respectively, sources from Cairn India told Business Standard.

The company plans to supply the entire production during the current fiscal from the Ravva field to Bongigaon Refinery and Petrochemicals at Assam.

According to an agreement signed with the government, if Cairn produces more than 1.3 million tonnes of crude oil, the excess production has to be supplied to Visakhapatnam-based Hindustan Petroleum Corporation refinery.

During the last fiscal, Cairn India produced around 400,000 barrels of crude oil from the Ravva field.

“Cairn India is doing a survey in KG basin for further oil field exploration. If we find more reserves, the company will take up drilling activities in the KG basin,” sources said.

The government has nominated Indian Oil Corporation, the nation’s largest refiner, and Mangalore Refinery & Petrochemicals Limited, a unit of explorer Oil and Natural Gas Corporation, for purchasing Cairn India’s crude oil.