Cairn on oil hunt in Bihar

MUMBAI: As the first step in its search for oil and gas in Bihar, Cairn India has started collecting seismic data in its Ganga valley block in the state. The data is being collected through an aeromagnetic survey over 12 districts spread over 15,500 sq km block. A specially-designed airplane has been hired from Canada to survey areas in the Samastipur, Darbhanga and Madhubani districts, company sources said. Cairn India has a seven-year licence for exploration work in the first phase. It is committed to drilling one well in the region by 2008. The aerial survey will continue for three months covering an area of 15,500 sq km flying 10 hours a day. It will be supplemented with a 2 dimensional (2D) seismic survey that would help the geologists map the structure beneath the surface. The Bihar block is considered a frontier area in terms of prospecting for oil because not too much exploration has been carried out in the region, though there has been evidence of hydrocarbon seepage over the years, the sources said. Discovery of hydrocarbons can prove to be a turnaround for the beleaguered state. Bihar was left with only agriculture and human resources after its bifurcation in 2000 as all the mines and industries went to Jharkhand. Cairn plans to acquire about 500 km of 2D seismic data that will cost about $10 million, it is learnt. The company has 13 blocks in India in the exploration phase and it will spend about $150 million to develop them over the next three years. Speaking to ET, Cairn India CEO Rahul Dhir said the company is now focussed on developing the Rajasthan field where it has identified 3.5 billion barrels of oil. The company hopes to sort out the contentious pipeline issue by the middle of the year. It is hoping that the government approves a plan whereby Cairn picks up 70% of the cost of building the pipeline, while ONGC pays the rest. The line is for the transportation of the Rajasthan crude up to Viramgam in Gujarat, where IndianOil can pick it up for processing in its refineries.