New Delhi: Cairn India on Monday raised the projection of crude oil production from its Rajasthan fields by 17% to 8.75 million tons even as it reported a net loss of Rs24.54 crore for the year 2007.
Plateau production from the three main Rajasthan fields - Mangala, Bhagyam and Aishwariya - has been raised to 175,000 barrels per day (8.75 million tons) from the previously announced 150,000 bpd (7.5 million tons), Cairn India Chief Executive Officer Rahul Dhir said.
“All of the major contracts for the midstream and upstream developments in Rajasthan have been awarded and work is progressing well towards first Mangala oil in second half of 2009,” he said.
Mangala field is likely to produce 125,000 bpd, Bhagyam 40,000 bpd and Aishwariya 10,000 bpd. “The plateau production of 175,000 bpd is likely to be reached in about one year from commencing oil production,” he said.
Dhir said recoverable reserve from the three main MBA fields has increased 9% to 685 million barrels. The other fields in the block have an additional 1.7 billion barrels of recoverable reserves.
Cairn and its 30% partner Oil and Natural Gas Corporation, he said, would invest $1.8 billion in the field development in 2008 and 2009 calendar years. Also, $800 million would be invested in the pipeline to transport the crude from Barmer district of Rajasthan to Gujarat coast. Of the total, Cairn’s share would be $1.82 billion.
The company said its consolidated loss after providing for tax for 2007, the first full year of its operation after listing, was Rs24.54 crore and for fourth quarter (October-December) was Rs13.9 crore.
Cash flow from operations, worked out as profit after tax prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortisation and deferred tax) and exploration cost, was Rs782.8 crore in 2007 and for Q4 was Rs146.5 crore.
Cash (net of borrowings) available as on 31 December 2007 was Rs1,738.6 crore.
The consolidated revenue of Cairn India and its subsidiaries for the year ended 31 December 2007 was Rs1,012.2 crore and for Q4 2007 was Rs2,66.7 crore.
The average oil price realisation in 2007 was $74.5 per barrel while the gas price realisation was $4.13 per million standard cubic feet.