The Cairn India-operated , Ravva oil and gas field in Andhra Pradesh has reached

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the landmark crude oil production of 200 million barrels. Approximately 7 per cent of India’s domestic crude production comes from the field that is located in the Bay of Bengal. The 200 millionth barrel of oil was produced at the weekend from the field which was earlier estimated to have reserves of just 101 million barrels of recoverable oil, said an executive of the joint venture operating the field. The field lies in the Krishna Godvari basin where Oil and Natural Gas Corporation, Reliance Industries Ltd and Gujarat State Petroleum Corporation have also discovered natural.

“Ravva has been a remarkable success story for all of the joint venture partners. It has been the bedrock of the development of Cairn in India -and at a time of globally high oil prices it is important for all partners,” said Rolf Stork, director of operations for Cairn India. The field is run by a consortium comprising ONGC, Cairn India, Videocon and Ravva Oil, a wholly owned subsidiary of Marubeni Corporation. The operator ship of the field is with Cairn India. “The operating costs are amongst the lowest for a field of its size anywhere in the world (top 25) and has so far given $3 billion to the government in profit petroleum,” added the executive. The four joint venture partners have together invested about $900 million in development and production from the field.

Discovered in 1987 by ONGC, the field’s operation changed hands to the Ravva joint venture through a production-sharing contract (PSC) signed in 1994. At the time of the signing of PSC, the field was producing 3,500 barrels of oil per day (bopd) and had an initial reserve estimate of 101 million barrels of recoverable oil.

The production rate was 35,000bopd in 1997 and in 1999 it had reached the plateau production rate of 50,000 bopd and has stayed at rate for the last nine years. With crude oil prices touching $100 a barrel of around the field is generating a daily revenue of $5 million.