07-03-01 A consortium led by Cairn Energy of UK will invest $ 200 mm to develop the CB-OS/2 oil and gas block in the Gulf of Khambat. The consortium, which comprises Cairn Energy, ONGC and Tata Petrodyne, is planning to drill around 11 wells in the block during 2001, a Cairn Energy official said here.
Cairn Energy-led consortium has made four hydrocarbon discoveries in the block where the third seismic survey has been carried out on the 1,500 sq km block. Meanwhile, ONGC is studying the oil and gas prospects in the block for a possible hike in its stake in the joint venture.
At present, the British company has 75 % interest in the consortium, ONGC 10 % and Tata Petrodyne 15 %. However, ONGC has an option to increase its stake by 30 % if a commercial discovery is made. Cairn Energy's stake would then be reduced to 50 %.
"We are studying the extent of oil and gas reserves in the four discoveries made so far and a decision on hiking stake in the venture would depend on the extent of commercially-exploitable reserves," ONGC chairman and managing director Bikash C Bora said. He said ONGC was keen on increasing its stake in the block but a final decision would be taken only after due consideration on the prospects in the field.