Cairn Receives DGH Approval For Appraisal Programme

New Delhi: The Directorate General of Hydrocarbons (DGH) has declared an appraisal programme for Cairn India''s northern appraisal area (NAA) in Rajasthan Basin. As per the approval Cairn would be need to drill five more exploratory wells in the area. This move of DGH follows a directive from the Petroleum Ministry, urging Cairn India to work on an appraisal programme for the area in consultation with the technical regulator. The Ministry''s decision asking Cairn to get an appraisal programme permitted had gathered significance in the backdrop of the DGH earlier rejecting to recognise the two recent discoveries Kameshwari West-2 and Kameshwari West-3 in the Rajasthan Basin announced by Cairn. The DGH had fell the two discoveries on the grounds that both the wells were drilled after the expiry of a minimum work programme period. Cairn had notified DGH about Kameshwari West-3 on May 9 and about Kameshwari West-2 on December 16, 2006.