Cairn India’s Barmer Fields Showing Significant Gas Resources

According to industry trackers, Cairn India’s Barmer fields in Rajasthan are showing significant blue fuel (gas resources) prospects. But till now the company has not made any official statement regarding the same. At present it is working on a new plant at the Raageshwari Gas Terminal to process up to 8.5 mmscmd (million standard cubic metres a day) of the fuel. 

As per media reports, Cairn-ONGC has drilled two high-impact prospects to test potential gas accumulation in the area. The results are encouraging and testing is underway. But currently the said block are producing a small quantity of gas.

If Cairn and its block partner, ONGC prove that there is a high gas prospect in Barmer fields, the companies can get a 10-year extension for the asset. Although the production-sharing contract is valid till May 14, 2020, the joint venture has already approached the ministry for an extension with an intention to future investments. But the proposal is pending and yet to consider from the ministry.

The companies may not have a problem in getting a five-year extension from the concerned ministry as the production-sharing contract for the block allows initial extension of five years.