Question : OIL DISCOVERY IN DEEP WATER BLOCK IN KG BASIN



(a) whether Cairn Energy of United Kingdom has made a significant oil discovery in deep water block in Krishna-Godavari basin recently;

(b) if so, whether the ONGC and OIL have failed to discover oil in deep water block in Krishna-Godavari basin;

(c) if so, the reasons therefor;

(d) whether the production sharing contracts with Cairn Energy have been made;

(e) if so, the details thereof; and

(f) the development plan of the field for early exploration?

Answer given by the minister


Minister of State in the Ministry of Petroleum & Natural Gas and Minister of State in the Ministry of Parliamentary Affairs (Shri Santosh Kumar Gangwar)

(a): Cairn Energy India Ltd., a Scottish Company, has made oil discoveries recently in two prospects in the deepwater block viz. KG-DWN-98/2, a New Exploration Licensing Policy (NELP)-I Block, in Krishna Godavari Basin, off the coast of Andhra Pradesh.

(b) & (c): Oil & Natural Gas Corporation Ltd. (ONGC) in the eighties had made two oil finds, viz. G-1 and G-2, in addition to one recent gas find KD-1-1 in deepwater areas of Krishna Godavari Basin. Their exploratory efforts are going on in Krishna Godavari deepwater areas in four Petroleum Exploration Licence (PEL)Blocks and two blocks acquired under the New Exploration Licensing Policy(NELP)-I.


Oil India Ltd.(OIL) was not operating in Krishna Godavari basin. Only recently they have obtained a participating interest in one deep water block, KG-DWN-98/4 offered under NELP-I to ONGC.

(d) & (e): Following Production Sharing Contracts have been signed by Government of India with Cairn Energy India Ltd. either solely or as a consortium member:-

Name of blocks	Consortium partners	Date of signing
1. Ravva Cairn Energy India Pty Ltd., Videocon Petroleum Ltd., Ravva Oil Pvt. Ltd. and ONGC 28.10.1998

2. RJ-ON-90/1 Cairn Energy and Shell India 15.5.1995 (21.12.1999)+
3. KG-OS-6 Cairn Energy and Videocon Petroleum Ltd. 30.6.1998

4. CB-OS-2 Cairn Energy, Tata Petrodyne and ONGC 30.6.1998

5. KG-DWN-98/2 Cairn Energy 12.4.2000
+ The contract was signed with Shell India with 100% Participating Interest (PI). Cairn Energy acquired 50% of PI in the block in December, 1999.


(f) The discoveries made by Cairn Energy in KG-DWN-98/2 need further appraisal in order to establish their commerciality for the development plans to be drawn up.