Cairn India, along with partner ONGC, will invest $5 billion in Rajasthan’s Barmer block to ramp up output to 300,000 barrels per day, from 175,000 at present. Cairn India had written to the petroleum ministry about its plans for the block, said a person close to the development.
Of the 25 discoveries made by the company in Barmer, two are producing. The Mangla field is producing 150,000 barrels, while another 25,000 is coming from the Bhagyam field. Another field, Aishwarya, would be contributing 10,000 barrels in the coming years, while Bhagyam would add 15,000 barrels. This would take the Barmer output to 200,000 barrels, for which the field development plan has already been approved by the government.
The Raageshwari and Saraswati fields commenced production during the year; cumulatively producing at a rate of 500 barrels. The development of Aishwarya field is underway. Its engineering, procurement and construction contracts have been awarded and it is expected to commence production towards the end of 2012.
Cairn India is the operator of the Rajasthan block, with a 70 per cent participating interest. Joint venture partner ONGC has a 30 per cent stake. More than 150 wells have been drilled in Rajasthan and have yielded 25 discoveries to date in the block.