Cairn India Limited, along with its partners is set to invest Rs 3,240 crore in the Ravva Fields in the Krishna-Godavari Basin, to undertake 20 Developmental Wells and for setting up related infrastructure, as the oil and gas production is dwindling from the existing wells.
According to the minutes of the meeting by Expert Appraisal Committee under the Ministry, the proposal was given green signal as far as Coastal Regulation Zone (CRZ) is concerned.
"In order to enhance the hydrocarbon production within the already approved capacities, Cairn India Limited 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) average daily gross operated production in 2016-17 against 23, 845 BOEPD in FY 16.
Cairn India officials did not respond to 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, which 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 the 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. The onshore processing facility though has approved capacity to produce 50,000 BOPD (Barrels of Oil Per Day) crude oil and 2.32 MMSMD ( Million Metric Standard Cubic Meters per Day) of gas and is presently producing approximately 22,000 BOPD of crude oil and 1.44 MMSCMD of natural gas, the minutes added.