Cairn''s Indian assets

Cairns Indian assets are both in the field of exploration and production; explorations in Western, Eastern and Northern India and production in the North and the East.

Its efforts in western India are almost exclusively focused on Block RJ-ON-90/1 onshore, in Rajasthan. Cairn commenced a multi-well drilling programme on Block RJ-ON-90/1 in 2002 and initial drilling activity focused on an exploration and appraisal campaign in the central and southern parts of the block. In early 2004, exploration activity moved to prospects in the northern third of the block and has resulted in number of major oil discoveries. Cairn currently has several drilling rigs operating in Rajasthan and is conducting fast-track exploration, appraisal and development activities in parallel across the block.

Elsewhere in western India Cairn has signed a production sharing contract for a 30 per cent interest in Block CB-ONN-2002 / 1 and has agreed to acquire a 30 per cent interest in Block CB-ONN-2001/1 from ONGC. Both blocks are located in the onshore Cambay Basin.

In the East, exploration drilling by Cairn in deep water acreage in the Krishna-Godavari Basin resulted in a succession of oil and gas discoveries in 2000 and 2001. In view of the large capital required for deep water appraisal and development, Cairn had agreed to dispose of a 90 per cent exploration interest in Block KG-DWN-98/2 to ONGC. Cairn has also relinquished its 50 per cent interest in Block KG-OS / 6.

Its production activities include its operation in Block CB / OS-2 in the Cambay Basin offshore Gujarat on which it has made several oil and gas discoveries. Of these, the Lakshmi and Gauri gas fields have been successfully developed and commenced production in November 2002 and April 2004 respectively. In February 2006, Cairn reported a daily gross gas production of 131.8 million standard cubic feet of gas from the two blocks and up to 50,000 barrels of oil per day from the Ravva field in the Krishna-Godavari Basin the East

In North India and Nepal, Cairn has acquired frontier exploration acreage and signed a production sharing contract for a 100 per cent interest Block GV-ONN-2002 / 1 and has agreed to acquire a 30 per cent interest in Block GV-ONN-97 / 1 from ONGC. Both blocks are adjacent to the border with Nepal.