Cairn Oil & Gas is preparing to launch a US$1.74 billion phased development plan to augment oil and gas production from the onshore Barmer Block beginning in April.

The Expert Appraisal Committee of India’s environment ministry approved the Barmer expansion project in Rajasthan, which is in western India. The term and conditions relate to environmental protections in and near development areas.

Cairn Oil & Gas, a vertical of mineral major Vedanta Resources Ltd., said in its proposal to the environment ministry that the company would pursue several upstream and midstream projects to increase oil from the onshore Barmer fields from the existing 300,000 barrels of oil per day (bbl/d) to 400,000 bbl/d. The company also aims to increase gas production from 165 million standard cubic feet per day (MMscf/d) to 750 MMscf/d.

The plan, according to the operator, involves developing satellite fields through well pads in the northern part of the concession to produce and process up to 100 MMscf/d of gas; augmenting production from existing oil fields through new wells and EOR methods; increasing gas processing capacity of the Raageshwari gas terminal (RGT) to 400 MMscf/d and oil and gas processing capacity of the Mangla processing terminal (RPT) terminal to 400,000 bbl/d and 250 MMscf/d; setting up of quick processing facilities (three-phase separation) of well fluids at existing fields; and constructing over 900 km of pipelines to transport produced hydrocarbons.

The operator will drill about 300 development/injection wells and construct 205 well pads to increase production from the Barmer fields. 

“The project will start execution after obtaining all the necessary approvals. The tentative plan to start the project will be from the financial year 2019-2020 onwards up to 2024-2025,” Cairn said. “The total project cost is estimated to be around INR 12,000 Crores (Rs 120 billion or US$1.74 billion).”

About Rs 80 million will go toward upstream development with the remaining Rs 40 million for midstream projects.

Development plan

The plan proposes drilling development wells in existing satellite fields, such as  NI, NE, KW-2, Sara-1, Sara-2, Guda-2, Guda-7 and Guda-S1/S3, Raag Oil WP-1 and Raag Oil Pad-3, and undeveloped satellite fields, such as NP, SL-1, KW-1, Sara SW-1, Raag oil WP-2, Guda-3, Guda-5, Guda-S2 and Guda-S7.

Each satellite field will have its own quick processing unit. The heater treater (three-phase separator) in the processing unit will separate crude oil, gas and water from extracted fluids, while the treatment system will dehydrate and remove impurities such as CO2 from gas extracted from the fields. The crude oil separated from the fluids will be transported to MPT for processing.

The satellite fields are expected to pump about 50,000 bbl/d of oil and about 100 MMscf/d of natural gas. 

Cairn aims to produce an additional 50,000 bbl/d of oil and 250 MMscf/d of gas from existing oil fields and about 250 MMscf/d from existing gas fields, mainly Raageshwari Deep Gas (RDG, from new wells and EOR using alkaline surfactant polymer (ASP), polymer, CO2 and water. It will launch polymer flood EOR in the Aishwarya and Bhagyam fields through injection wells and ASP flood in Mangala and other fields to increase production.   

Plans also include constructing pipelines to transport produced oil and gas in the Barmer concession to RGT and MPT for processing. In addition, a new 30-in., 700-km (434.9-mile) gas pipeline will be laid from Barmer to Bhogat (Gujarat) to transport up to 500 MMscf/d of gas to users.

Hydrocarbon reserves

Cairn Oil & Gas said the Barmer Block still has huge hydrocarbon reserves despite more than two decades of production. So far, the company has drilled about 500 wells and made 38 hydrocarbon discoveries in the concession. Of the discoveries, ten have been developed or are under development.

A study prepared by DeGolyer and MacNaughton, according to the operator, states the potential resource of the block is estimated at 6.2 billion barrels of oil equivalent (boe) in place. The Fatehgarh Formation in the main fields Mangala, Bhagyam and Aishwariya hold 2.2 billion boe in-place, of which the proved and probable recoverable resources base is an estimated 410 million boe.  

The block has an undiscovered, unrisked prospective resource potential of about 2 billion boe, the company said.

Cairn Oil & Gas is the operator of the RJ-ON-90/1 Block, which covers 3,111 sq km (1,201 sq miles), with a 70% participating interest. Partner ONGC owns 30%.

 

 

Onshore