Rajasthan: Cairn India and ONGC plan to crank up oil flow in the Indian state.
Rajasthan duo sets aside $4bn
Cairn India and Oil and Natural Gas Corporation will jointly invest $4 billion to raise production of its oilfields at Barmer in the Rajasthan state by 25,000 barrels of oil per day to 200,000 bpd, according to Cairn India’s chairman Bill Gammell.
“By 2011, Cairn and its joint venture partner will invest up to $4 billion on the development of Mangla, Bhagyam and Aishwarya fields,” Gammell was cited as saying in the Economic Times of India.
“We believe there is potential to extend and enhance peak plateau production from Rajasthan fields above the level of 175,000 bpd,” he said.
Crude production at Mangala field in Barmer basin will begin by month-end. Initial production is expected to reach 30,000 and will be ramped up by 100,000 bpd in the first half of 2010.
The investment will be split 70/30 between Cairn India and ONGC.