New Delhi: Cairn India has projected a peak projection of 3,00,000 barrels per day from its prolific Rajasthan oil block, a quarter more than the previously projected peak output.
Sources privy to the development said Cairn on Monday informed the Management Committee which overseas operations of the block, that Mangala and other oilfields in the block can produce 3,00,000 bpd, subject to regulatory and partner approval.
Mangala, the biggest of the 18 discoveries Cairn has made in Rajasthan block, can produce 1,50,000 bpd as against current output of 1,25,000 bpd. Bhagyam can produce 60,000 bpd and Aishwariya another 25,000 bpd. Other fields can produce 65,000 bpd.
Sources said the oil regulator DGH and the oil ministry, which are represented on the Management Committee, needs to approve field development and investment plans as also extension of the exploration over the rest of the block.
Cairn India holds 70% interest in the block and state-owned Oil and Natural Gas Corp (ONGC) the remaining 30%.
Separately, Cairn India CEO and managing director Rahul Dhir said the production from Bhagyam will start in the last quarter of this year subject to regulatory approvals.
“Once we get necessary approvals, production will start in the next quarter,” he told reporters on sidelines of the World Energy Policy Summit here.
The start of output is awaiting ONGC and Management Committee approval.
“Production can be ramped up to 40,000 bpd by first quarter of next year,” he said, adding production start-up from Aishwariya is planned in second half of 2012.
Sources said oil ministry has not approved Bhagyam development since London-listed Vedanta Resources announced $9.6 billion acquisition of Cairn India.
Cairn and Vedanta have now agreed to the government conditions on paying royalty and cess on Rajasthan block to get approval for the transaction.
With this, the company hopes to get necessary approvals for output boost, they said.