The country's biggest private sector oil producer, Cairn India, which is a part of Anil Agarwal's Vedanta group, is set to considerably increase its gas production to three million standard cubic metres a day (105.9 million standard cubic ft) by June 2019.
Production from its Raageshwari Deep Gas (RDG) field is expected to increase to 100 million standard cubic ft a day (mscfd) by then. The firm's production capacity for the September quarter of FY18 stood at of 33.8 mscfd.
"We have started investing in a $1-billion programme. After the completion of the RDG Phase-I this month, gas production is expected to increase to 40-45 mscfd," said Sudhir Mathur, chief executive officer for Cairn's oil and gas business.
Activity on tenders for partnership with leading service providers for integrated delivery of RDG Phase-II is underway. This is expected to increase gas production and condensate production to over 5,000 barrels of oil equivalent per day (boepd) by the first half of 2019.
As on September-end, gas sales, after captive consumption, stood at 18 mscfd. "Through the planned investment, our oil production is set to increase to 300,000 barrels," he added.
Mathur said the company would also be undertaking drilling in its Krishna-Godavari block in the first quarter of 2018. The average gross production of Cairn India during the September quarter was 180,955 boepd. Gross production from the Rajasthan block averaged 153,238 boepd.
The current investment will cater to five blocks- the RDG project, the enhanced oil recovery (EOR) programme at Aishwariya fields, the EOR programme at Bhagyam and Barmer Hill, and the Aishwariya Barmer Hill.
The company's production sharing contract for Barmer expires in 2020 but higher cess in the extended regime could impact plans.
Cairn India has been asking for a cut in the cess rate to eight per cent of the realised price of crude oil, following the government's call to reduce the country's crude oil import by 10 per cent.