Cairn discovers oil reserves in KG basin

Cairn India, which is on the verge of being acquired by mining firm Vedanta Resources, has made an oil and gas discovery in an onland KG basin block.

Cairn made the discovery in the second well drilled in the block KG-ONN-2003/1 in Krishna Godavari basin.

“The company had informed the oil regulator DGH about the discovery but has not put any number to the potential reserves the find may hold,” a source said.

DGH has only been submitted technical data on the discovery and reserves would be known only when Cairn drills more wells to appraise the find, he said.

Cairn had won the block KG-ONN-2003/1 in the fifth round of bidding of New Exploration Licensing Round (NELP).

“It is too early to put a number to the discovery,” the source said.

Billionaire Anil Agrawal-controlled Vedanta Resources has concluded talks to buy a majority stake in Cairn India and an announcement is expected to be made any time now.

“Probably, it will be made tomorrow,” the source said.

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