International BusinessCairn's Rajasthan oil fields to start production in few days
Cairn India will begin production of crude from its Rajasthan fields in a few days, company Managing Director and CEO Rahul Dhir said today.
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"There are a few days left (for production to commence)," Dhir told reporters after the company"s third annual general meeting (AGM) here.
The first oil from the Mangala, Bhagyam and Aishwariya (MBA) fields will begin this month itself, he said.
The company will also invest $1.5-1.8 billion in 2010-11, of which 70-80 per cent will go to 25 discoveries in Rajasthan, Dhir said.
Cairn India, along with its 30 per cent partner, state-owned ONGC, will develop the MBA fields -- the three of the 25 discoveries in the Rajasthan block that are being put to production in the first phase.
Cairn will produce up to 8.75-million tonnes or 1,75,000 barrels per day (bpd) of low sulphur, waxy crude from these fields.
This will account for about 20 per cent of India"s crude production and is estimated to bring down the country"s oil import bill by about $6.8-billion, according to Goldman Sachs.
The company has invested USD 1-billion in laying a 600 km pipeline from Barmer in Rajasthan to Bhogat in Gujarat for offtake of crude.
An Empowered Committee of Secretaries (ECS) has agreed to make Bhogat the delivery point in the period leading up to commissioning of a heated pipeline transporting crude from Barmer.
Kandla has been approved as the interim delivery point for offtake by Mangalore Refinery and Petrochemicals (MRPL) and Hindustan Petroleum Corp (HPCL), while Indian Oil Corp (IOC) will pick up the crude at Bhogat, Radhanpur and Viramgam.