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In the high technology area of oil field development, Videocon has the distinction of being the first Group in the Private Sector to have been awarded a Production Contract, in an Unincorporated Joint Venture with Command Petroleum Limited, of Australia (presently its successor is Cairn Energy of (UK), Marubeni Corporation of Japan and Oil & Natural Gas Corporation Limited, India, to develop and further explore RAVVA Oil and Gas Field in the Bay of Bengal, off the coast of Andhra Pradesh. Videocon Petroleum Limited, capitalized at U.S. $20 million, has a 25% participating interest in the RAVVA Field. Phase I of the RAVVA Development Plan, envisaging production plateau rate of 35,000 BOPD and 0.7 MM3 of gas per day, as per PSC has been achieved in December 1996 and maintained since then. As many as 13 additional information obtained during development drilling, the initial reserves have now been reassessed at an increased level of 223 MMBBLs recoverable oil reserves (251 MMBOE of oil and gas), more than double that was originally envisaged, and sufficient to raise the Production Rate to 50,000 BOPD. Ten Exploration Wells have also been drilled in the RAVVA concession area and some of these have gone to establish additional hydrocarbon reserves, mostly as at shallower levels, approximately 3 billion cubic meters of Gas (19.5 MMBOE). These are being assessed in greater detail and will be taken up for development in the Second Phase, either as Satellite Fields or new discoveries. Onshore Gas and Oil processing facilities, Oil export lines, tanker loading facilities, water injection and gas lift facilities have a capacity to handle over 50,000 barrels of Oil and 70,000 cubic meters of Gas per day. Joint Venture has crossed the 25 million-barrel cumulative production mark in July 1998. Expenditure incurred is more than U.S. $300 million and gross revenue in excess of U.S. $400 million. Oil has being sold to HPCL as Nominee of Government for refining in the Vizag Refinery and Gas is sold to GAIL, both at International Price.
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