Essar Oil, has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. It is focused on being a leading player in the unconventional space and Raniganj East CBM Block is its anchor asset. The company is currently producing 0.55 mmscmd of CBM gas from this asset and expects to ramp up production to 1.2 mmscmd in coming months. It is well placed to apply its learnings from the Raniganj block to explore and develop the four other CBM Blocks in its portfolio.
Essar’s strategy for conventional assets is to explore and grow in consortium with other E&P companies with proven track record and regional knowledge.
Consistent with this approach, it has farmed out 50% participating interest to Eni in its Vietnam Block. Essar's share of initial exploratory well campaign expenditure corresponding to 50% participating interest is being borne by Eni. Well engineering is underway and drilling in this Block is expected in 2016.
Likewise, it has also farmed out 70% participating interest in Mumbai Offshore Block to ONGC and Essar's share of exploratory well expenditure corresponding to 30% participating interest is to be carried by ONGC. Post approval of assignment by the Government, ONGC as operator shall be planning to drill the exploratory well in fair weather window which begins in October.
More about this differentiating strategy here
(Essar Energy to drill at Mumbai High field, Vietnam blocks to increase crude oil production)
