Cairn set to begin exploration in Krishna-Godavari offshore block.

Now that the Defence Ministry has withdrawn its objection, oil company Cairn India is set to begin exploration at a promising offshore block in the Krishna-Godavari basin, next to its prolific Ravva field on the eastern coast of the country.

In the next quarter, the Anil Agarwal-led company will begin seismic shoots (or imaging the earth below by sending shock waves and capturing their reflection) in the KG-OSN-2009/3 block, Chief Executive P Elango told Business Line. Cairn won the 1,988 sq km block in 2010, in the eighth round of the NELP (New Exploration Licensing Policy) bidding of hydrocarbon assets. The Ministry of Defence put a stopper on Cairn's plans for the block as it had plans for its own activities in the area. A two-year wait came to an end for Cairn two months back when the ministry, at the behest of the Cabinet Committee for Investments, agreed to let the oil company go ahead with its plans on one part of the block, which constitutes about 60 per cent of the area.

Cairn told the Ministry of Petroleum and Natural Gas it would surrender the other 40 per cent, provided the latter would correspondingly reduce its agreed 'minimum work programme' for the block. In the hydrocarbons business, nobody can predict a find unless a company drills and gets to it, but since this block being next to the 'jewel' Ravva, Cairn is optimistic.

HBL