Cairn India to invest $100 mn in Rajasthan gas fields

The company is targeting to increase gas production to 40-45 million standard cubic feet per day by 2017

Cairn India, the Vedanta group company, would be investing $100 million (Rs 67,000 crore) this year, with focus on its Rajasthan gas fields. The capital investment is estimated for this financial year, with 80 per cent focus for development of the Raageshwari Deep Gas (RDG) project and completion activities of the Mangala field's enhanced oil production, a company spokesperson said.

“As part of Phase-1, eight out of the 15 wells have been brought online and will start adding to the production. The rest of the wells are also planned to be brought online by December.”

A contract for augmentation of the existing facility will be awarded shortly. That for enhancement of the existing pipeline capacity should be awarded in the current quarter, he said. 

Completion of Phase-1 is expected to increase the gas production to 40-45 mscfd by the end of the first half of 2017. For Phase-2, tendering activity for a new gas processing terminal and drilling rig is on. Completion of Phase-2 will increase production upwards of 100 mscfd and condensate production to about 5,000 boepd (barrels of oil equivalent per day).

Since early 2013, the Rajasthan joint venture (JV) is selling Raageshwari gas and delivering to Gujarat State Petroleum’s Gujarat Grid; fertiliser units in Gujarat are transporting gas through GSPL’s network. GSPL, along with its JV partners, is laying a pipeline up to Barmer for offtake of higher volumes through its Mehsana-Bhatinda pipeline. A company spokesperson said Cairn was working with GSPL to enhance sales.

Output from Rageshwari increased from 28 mscfd in the June quarter to 33 mscfd in the September one. Total gas sales have been 1.6 billion cubic fr, at an average rate of 17.2 mscfd. Expected ultimate gas recovery has increased by 26 per cent, from the initial estimates.

“While the JV wishes to ramp-up gas sales from RGD from current volumes, it is in discussion with the government and looks forward to a higher allocation,” the company said.