Cairn ups 2Q profit, hopeful of Mannar drillings

Sanjeevi Jayasuriya

Cairn India Limited is hopeful of further success in Sri Lanka's oil exploration to ascertain the commercial viability of the process.

Releasing its second quarter financial results for the period ended September 30, 2011 Cairn India Managing Director and Chief Executive Officer Rahul Dhir said that the discovery and establishment of a working hydrocarbon system in SL 2007-01-001 block in the Sri Lanka frontier exploration drilling is a positive outcome.

"It was the first well of the three-well programme in the Mannar Basin. CLPL-Dorado-91H/1z well was the first ever exploration well drilled in Sri Lanka in 30 years and also the first with a hydrocarbon discovery," he said.

"With strong support from the Government of India and alignment with our partner ONGC, we are now poised to optimise development of the Rajasthan resource in the best interests of our nation.

The Mangala reservoir, processing and pipeline infrastructure continue to perform as expected, to ensure safe delivery of 125,000 barrels of oil per day (bopd) and we are focussed on commencing production from the Bhagyam field shortly, he said. Cairn India is increasingly confident of delivering a significant part of the currently envisaged basin potential of 240,000 bopd from the Mangala, Bhagyam and Aishwariya fields alone. "On the exploration front, the discovery of a working hydrocarbon system with the first exploration well in the frontier Mannar Basin, Sri Lanka underscores Cairn India's technical competence, an essential platform for growth. "I am proud of the Cairn India team that has remained focused and continued to deliver successfully across the entire business," he said.

In the KG-ONN-2003/1 block in Mannar, preparations are ongoing to commence exploration drilling in November 2011. An update on the well results will be provided at the end of the programme, which is expected to complete by early next year.