The Hindu : Andhra Pradesh News : Ravva field crosses milestone

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Saturday, Nov 07, 2009
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Andhra Pradesh

Andhra Pradesh

Ravva field crosses milestone

B.V.S. Bhaskar

Completes 15 years of continuous operations

Cairn confident of producing more oil from this block
Ravva has produced 220 mnbl (million barrels of oil)

RAVVA (Konaseema): Completing 15 years of continuous operations, Cairn India’s Ravva field in Krishna-Godavari basin has crossed another milestone on Friday and thus far produced 220 mnbl (million barrels of oil), while the average gross production in the current second quarter was 42,008 boepd (barrels of oil equivalent per day).

When ONGC discovered this field, it was estimated to produce 101 million barrels, but had far exceeded the expectations. Ravva now is a mature field with 17 years of production.

Cairn is confident of producing more oil from this block before the expiry of Production Sharing Contract (PSC) primary term in 2019 as it has considerable reserve potential.

The Ravva block’s operating cost per barrel at approximately USD 2 per bbl is amongst the lowest in the world.

This was made possible through planning, monitoring and innovative application of operating technologies.

The Ravva PSC is currently valid until October 27, 2019, but may be extended, upon mutual agreement, for an additional ten years. Three wells planned to be drilled in KG-ONN-2003/1 in Q4 2009, as part of a five-well programme, will now spud in Q1 2010.

Further exploration potential is believed to exist in the field in the deeper high pressure / temperature Oligocene unit.

Ravva JV has paid more than US$ 900 million as royalty & Cess on crude oil along with US$ 70 Million royalty on gas to Government of India. It has also paid over US$ 115 million as sales tax / VAT on gas which accrues to the State government.

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