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CAIRNS COMMENCES COMMERCIAL OPERATIONS
by Our Business Correspondent
- Cairns
Energy PLC has commenced development of Lakshmi Gas field from 1 November
2002. The first sales from this field was also started.. The field is
currently undergoing a brief commissioning period. Contractual plateau
volumes are 120 million standard cubic feet of gas per day( mmscfd). Cairn
holds a 50% interest in the ring-fenced Lakshmi development area in Block
CB/OS-2. The remaining interests are held by Oil & Natural Gas Company
Ltd. ("ONGC") with 40% and TATA Petrodyne Limited with 10%. The
joint venture has two Gas Sales Contracts for Lakshmi gas - one with Gujarat
Gas Company Limited and the other with Gujarat Powergen Energy Corporation
Limited.
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- Cairns
has also reported commencement of the drilling of
the RJ-E-1 exploration well, onshore Rajasthan, from
30 October 2002 and is anticipated to reach total depth prior to the
year end. Cairn holds a 100% interest in Block RJ-ON-90/1. ONGC has a right
to 30% in the event of a commercial discovery on the block.
Commenting on the operations, Bill Gammell, Chief Executive, stated “I
am delighted that we are now selling gas from Lakshmi. The joint venture has
achieved production within two and a half years of the initial gas discovery
in May 2000. I am also pleased that we have commenced a multi-well
exploration and appraisal drilling programme in Western India with the well
on Prospect E. This is the first exploration well to be drilled on the
Rajasthan block since Cairn's acquisition of an additional 50% interest from
Shell."
(8/11/02)
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