Cairn gets environmental nod to raise oil production

Environmental clearance has been granted to the company to augment hydrocarbon production in Barmer and Jalore districts of Rajasthan to 300,000 barrels of oil per day

Cairn India has received environmental nod for raising crude oil production from its prolific Rajasthan fields by 50% to 300,000 barrels per day (15 million tons a year).

Environmental clearance (EC) has been granted to Cairn India to augment hydrocarbon production from the RJ-ON-90/1 block in Barmer and Jalore districts of Rajasthan to 300,000 barrels of oil per day from current limit of 200,000 bopd, sources privy to the development said.

Cairn had made 31 oil and gas discoveries in the Rajasthan block, of which four - Mangala, Bhagyam and Aishwariya (together known as MBA fields) and Raageshwari have been put on production. It contributes about 30% of India's domestic crude oil production.

The output had touched 200,000 bpd in March but the block is currently producing about 190,000 bopd, they said.

Since the resumption of exploration in March last year, the company has successfully opened up five new play types, proving up a resource base of over 1 billion boe in place.

The company has initiated enhanced oil recovery programme at its Mangala field, the largest in the Rajasthan block, to raise recovery and support output from the field in the longer term.

Sources said two new gas prospects have been found in the block, prompting Cairn to set up a gas processing plant at its existing Raageshwari gas terminal for processing 100 to 300 million cubic feet gas per day.

Raageshwari field is a major gas field, located down south of the Rajasthan block. Gas from Raageshwari field is currently processed at Raageshwari Gas Terminal (RGT) located abut 80 km from Mangala oil Processing Terminal (MPT).

"We have plans to upgrade the existing Raageshwari Gas Terminal and are looking at options to construct a new gas pipeline to monetise the additional gas potential in the block," Cairn had previously stated.

The firm earlier this month floated a query inviting Expression of Interest under International Competitive Bidding (ICB) route for upgrading the facility.

The new gas processing plant shall be designed for processing 100 to 300 mmscfd of gas.

Also, as a part of Rajasthan gas development project, it plans to lay pipelines to take the gas to the nearest grid. An international expression of interest has been floated for laying a 200-km pipeline from Barmer to Palanpur in Gujarat.