Cairn India Q3 net jumps 7-fold to Rs 2,010 cr

Cairn India, the operator of the nation's biggest onshore oilfield, today reported an almost seven-fold jump in net profit for the third quarter on back of record increase in output.

Net profit climbed to Rs 2,010.12 crore in October-December from Rs 290.96 crore a year earlier, Cairn said in a press statement here.

Cairn said it produced an average of 124,861 barrels per of oil from its mainstay Rajasthan block in the quarter. The company realised an average of $75.9 per barrel price for the oil as compared to $70.7 a barrel in Q3 of 2009-10.

It had started production from the Mangala oilfield, the largest in the Rajasthan block, in August-end and is selling the oil to Reliance Industries, Essar Oil and Indian Oil Corp.

"Mangala reservoir performance and surface facilities (are) ready to support immediate production increase of 25,000 barrel per barrel to 150,000 bpd," Cairn said.

Bhagyam, the second-biggest field in the Barmer block in Rajasthan, is expected to commence production in the second half of 2011 calendar year and will "achieve approve plateau rate of 40,000 bpd by end of calendar year 2011".

"Mangala production has consistently delivered at the currently approved plateau rate of 125,000 bpd. A further production increase to 150,000 bpd remains subject to joint venture and government of India approval," company Managing Director and CEO Rahul Dhir said.

"All of the processing systems and the pipeline infrastructure have demonstrated safe and efficient operations and we continue to work with the government of India to rebuild the momentum and ensure the national resource in Rajasthan enhances our contribution to our nation's energy security," he added.

Income from operations jumped to Rs 3,096.44 crore in October-December from Rs 495.46 crore in the same period last year.