Cairn India made oil discovery in Krishna-Godavari basin block

New Delhi: KG basin Cairn India, a Vedanta group company, has announced an oil discovery in its onshore block in the Krishna-Godavari basin where it had made a gas discovery about a year ago said.

The company has informed about the discovery to the block's management committee (MC) and awaiting its approval, a company spokesman said. The committee, which is chaired by the director general of hydrocarbons and represented by an oil ministry official, regulates affairs of the block.

Nagayalanka SE-1 is an oil discovery whereas Nagayalanka SE is predominantly a gas discovery, the spokesman said. The company has found about 57 meters oil bearing hydrocarbon column and experienced flow of oil at an average rate of 70 barrels per day and 0.6 million standard cubic feet per day gas from the discoveries.

"Further testing is ongoing," it said in a statement. Company could not disclose details of oil and gas reserves pending appraisal of discoveries.

"Further appraisal will be required to establish the commerciality of the Nagayalanka-SE discovery," the statement said. The block, KG-ONN-2003/1 is currently in the second phase of exploration, where the company has completed the committed minimum work programme. Cairn is the operator of the block with 49% stake while state-run ONGC holds balance 51%.