Cairn IndiaBSE 1.75 % today reported 4 per cent drop in crude oil production at its flagship Rajasthan oilfields during the quarter ended March 31, mainly due to under-performance of its second biggest discovery.
Production at Barmer block in Rajasthan in January-March dropped 4 per cent to 167,650 barrels of oil and oil equivalent gas per day, Cairn said in a regulatory filing.
Its eastern offshore Ravva fields saw a 40 per cent drop in output in the fourth quarter of 2015-16 fiscal at 19,058 boepd while Cambay field off Gujarat managed a 8 per cent increase in production at 10,331 boepd.
“Average gross production for Q4 FY2016 was 197,039 barrels of oil equivalent per day (boepd), 9 per cent lower than Q4 FY2015, primarily due to lower volumes from Ravva on account of its natural decline,” Cairn said.
Gross production from Rajasthan declined by 4 per cent “mainly due to natural decline and under-performance of the Bhagyam reservoir,” it said.
Bhagyam is the second biggest oil discovery in the Rajasthan block after Mangala.
“Lower volumes at Rajasthan were partly offset by infill wells in Aishwariya, better reservoir management initiatives across the field and a ramp up of production from successful EOR project execution.
“Gross production from Development Area DA1 and DA2 averaged at 150,918 boepd and 16,732 boepd, respectively,” it said.
DA1 comprises of Mangala, Bhagyam and Aishwariya oilfields while other discoveries are in DA2.
Cambay block production increased by 8 per cent compared to Q4 FY2015 driven by commissioning of an artificial gas lift system and better reservoir performance in 4Q16, it said.
For the full 2015-16 fiscal, average gross production was 203,703 boepd, 4 per cent lower than FY2015 on account of lower production from Rajasthan and offshore assets.
“Rajasthan production declined 3 per cent (to 169,609 boepd) due to reservoir underperformance at Bhagyam. However, an excellent performance by Mangala EOR and contribution from Aishwariya infill program partly made-up for the decline,” it said.
Cairn said Mangala enhanced oil recovery (EOR) project was on track and producing the result as expected.
“Prudent reservoir management practices helped us reduce the impact of natural decline in our offshore assets,” it said.
Gas production from the RDG field increased to an average rate of 27 million standard cubic feet per day in 2015-16 as compared to 16 mmscfd in 2014-15 and surpassing guidance of 25 mmscfd. Brent Qvale JerseyShare This