Shri Ram Naik, Minister of Petroleum and Natural Gas and Smt. Vasundhara Raje, Chief Minister of Rajasthan named the large oil discovery made by Cairn Energy of UK in Barmer district of Rajasthan and dedicated its oil to the nation at Barmer.
Shri Naik and Smt. Vasundhara Raje named the discovery as "Mangala". They mentioned that Cairn Energy has made an oil discovery in the well NB –1 in its block RJ – ON – 90/1. The initial in place oil estimates made by Cairn Energy in this discovery ranges between 450 to 1,100 million barrels (63 million metric tonnes to 153 million metric tonnes). Preliminary estimates indicate a recoverable reserve in the range of 7 million tonnes to 28 milliuon tonnes.
Cairn Energy has used State – of – the – art technology and geological modeling in exploration of oil and gas in this bloc in Rajasthan. Cairn has made a total of 5 discoveries in this block.
Shri Naik and Smt. Vasundhara Raje mentioned that the contract for the Rajasthan block ‘RJ – ON – 90/1’ was signed between Government of India and Shell, the giant major oil company, and ONGC in 1995. The petroleum exploration license has been granted by Rajasthan Government. Subsequently, Shell assigned its interest and operatorship to Cairn Energy of UK.
Government of India has formulated India Hyderocarbon Vision 2025 (IHV) laying down road map to make a strong and competitive Indian Hydrocarbon sector and secure Hydrocarbon security to the country. Government has already made significant progress in implementation of goals envisaged in IHV.
Central Government formulated a progressive New Exploration Licensing (NELP) to give thrust to exploration of oil and gas in the country including in the deep water Offshore areas. This has resulted in large gas discoveries in Krishna Godavari deep water blocks off Andhra Pradesh coast. With ongoing aggressive exploration programme in the country, more discoveries of oil and gas are expected in near future.
Shri Naik and Smt. Vasundhra Raje mentioned that a number of companies namely Cairn Energy, ONGC, OIL, Essar Oil Ltd., Polish Oil and Gas Company and Phoenix Overseas Ltd. are exploring oil and gas in Rajasthan. A total of 6 blocks (including 1 block under NELP IV) are under exploration in Rajasthan, in addition to ONGC’s and OIL’s operations in nominated blocks. This shows investors confidence in progressive policy frame work provided by the Government.
Shri Naik and Smt. Vasundhra Raje hoped that the discovery would be commercialized by Cairn Energy at the earliest. They said that Central Government and Rajasthan Government would extend all co–operation to enable the company to monetise its discoveries in the block.
Cairn Energy expects to target first oil from the block in the first quarter of 2005. The discoveries would provide a source of revenue to the State Government in form of royalty and would benefit the local economy.
(Release ID :1077)