Cairn discovers more oil in Rajasthan block

Cairn discovers more oil in Rajasthan block



NEW DELHI: Highly placed sources in the Petroleum Ministry have said that Cairn India has discovered new oil reserves in Rajasthan oilfields.

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The company is likely to make an announcement shortly. New oil reserve will increase India's domestic oil production by about 23% in financial year 2011. This essentially means that these reserves are very big.

Rahul Dhir, the Chief Executive of Cairn India has met the Petroleum Minister Murli Deora who in turn has congratulated him and the company for the discovery. Cairn India extracts oil from the Barmer region of Rajasthan. Cairn started output from Mangala - the nation's largest onland oil find in more than two decades in late August 2009.

Cairn India said oil reserves in its Thar desert field in Rajasthan have increased to 4 billion barrels of oil equivalent.

Previously, discovered in place resources were pegged at 3.7 billion barrels of oil and oil equivalent gas, the company said in a press statement here.

"Resource base provides potential to produce 240,000 barrel of oil per day (as against previous estimate of 175,000 bpd)," it said.


Cairn said it is on track to ramp up output from Rajasthan fields to 125,000 barrels per day in the second half of 2010. Current output is around 20,000 bpd.

The company has tied up sale of 143,000 bpd (over 7 million tonnes a year) of oil.

Cairn said production potential from Mangala, the largest field in the block, has increased to 150,000 bpd from previous 125,000 bpd.


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Src: Economictimes.Indiatimes