Mumbai: Cairn India Ltd, a unit of UK’s Cairn Energy Plc, plans to invest $2 billion over 18 months in its Indian operations, Chairman Bill Gammell said at a shareholders meet on 25 June.
He added that a project to develop fields in Rajasthan will cost $850 million in 2008.
Cairn expects to start production at its Mangala oil field in the western state of Rajasthan in the second half of 2009, he said. Output from the Bhagyam and Aishwariya fields will start in 2010, said Gammell. Cairn has also raised its estimate for proven and probable reserves at Mangala, Bhagyam and Aishwariya fields by 9% to 685 million barrels.
Cairn India is developing 3.05 billion barrels of oil and its reserves stand at are 5.1 billion barrels.
The company has already started the construction of a 600-kilometer pipeline to transport crude oil from its Rajasthan fields to the Indian western coast.
Cairn’s profit for the quarter ended March 31 almost tripled as crude oil prices soared. Oil prices have risen 44% since the start of this year. Oil prices climbed to a record $139.89 a barrel in New York on June 16.