Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Energy/  Cairn to begin gas production from Rajasthan by March-end
BackBack

Cairn to begin gas production from Rajasthan by March-end

Firm has sent a letter seeking approval of a price for the gas to the oil ministry on 30 January

Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block. (Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block.)Premium
Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block.
(Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block.)

New Delhi: After giving the nation a massive oil discovery, Cairn India is now ready to begin natural gas production from its prolific Rajasthan block and has sought government approvals to begin sale to consumers by month end.

Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block. The gas produced in used for power generation for internal consumption. It, however, sees the resource base supporting commercial production of about 1 million standard cubic metres per day.

Anil Agarwal, executive chairman of Vedanta Resources, which owns majority stake in Cairn India, has written to oil minister M. Veerappa Moily saying the company “will be ready to achieve sale of natural gas from the block in March 2013."

Cairn and its partner Oil and Natural Gas Corp (ONGC) “have been working towards ensuring development and commercial production of the natural gas resources in the block and have achieved substantial progress," he said.

Gas sales, he said, would begin upon “approval of price and gas allocation from the ministry of petroleum and natural gas as per Gas Utilization Policy. The company has already sent a letter seeking approval of a price for the gas to the ministry on 30 January, he said.

Agarwal invited Moily to the fields to inaugurate the sale of natural gas from the Rajasthan block.

Sources said Cairn is installing equipment to remove carbon-dioxide (CO2) from the gas before it is sold to consumers like power plants. The company currently produces about 170,000 barrels per day of crude oil from Mangala and Bhagyam oilfields in the Rajasthan block.

Mangala and Bhagyam are the biggest among the 25 oil and gas finds Cairn has made in the desserts of Rajasthan. Aishwariya, the third biggest field, too is ready to begin production and will contribute about 10,000 bpd at peak.

Agarwal said the block had potential to reach 300,000 bpd of crude oil production besides holding substantial natural gas resources. Cairn is seeking single window clearance for the Rajasthan project and plans to submit one integrated field development plan for all the finds instead of submitting separate development plans for different discoveries.

Also, it wants work programme and investment budget to be approved for a rolling three years to provide continuity. Currently, the government approves yearly work programme and budget.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Mar 2013, 08:43 PM IST
Next Story footLogo
Recommended For You
Energy Stocks
₹1,824.250.53%
₹166.250.9%
₹516.82.34%
₹88.561.21%
₹330.651.6%
Switch to the Mint app for fast and personalized news - Get App