Cairn India plans to Invest USD150 Million in E&P Activities in Andhra Pradesh
The development of project
would surge the oilfield service market in the country
India: Cairn India plans to
undertake exploratory and appraisal drilling activities of ten hydrocarbon
wells at Palar Block in Andhra Pradesh with an investment USD150 million in a
bid to explore hydrocarbon reserves in the region. The Expert Appraisal
Committee (EAC) which is an undertaking of Ministry of Forest, Environment
Climate Change gave its approval for the exploration activities in the region.
The company plans to drill 3 hydrocarbon wells under the first phase by 2017 and
plans to expand its exploration activities gradually. The exploration of
hydrocarbons in the country boost the petroleum and natural gas based products
and services business such as oilfield services.
TechSci Research finds out that the exploration
of hydrocarbons in the Palar basin would boost the production of hydrocarbons,
thereby creating the demand for oilfield services in the country. India is
largely dependent upon imports of crude oil and natural gas in order to meets
its energy requirements. The plans to boost the domestic production of oil and
natural gas would result in increased demand for services that stimulates the
hydrocarbon drilling activities in the region. This will give a major boost to
the India oilfield service market.
According to released report of TechSci Research “India Oilfield Services
Market Forecast & Opportunities, 2020”, the country’s oilfield
services market is projected to surpass USD7.8 billion by 2020, on account of
anticipated increase in oil and gas E&P activities. Onshore oilfield
services segment holds majority share in India’s oilfield services market;
however, the offshore oilfield services is forecast to exhibit higher growth
during 2015- 2020.