The Vedanata Group company Cairn India has sought government‘s approval to increase production from its prolific Rajasthan block by 20 percent to 200,000 barrels a day, from 175,000 barrels a day currently in mid March, reports CNBC-TV18‘s Nayantara Rai quoting sources.
The Vedanata Group company Cairn India has sought government’s approval to increase production from its prolific Rajasthan block by 20 percent to 200,000 barrels a day, from 175,000 barrels a day currently in mid March, reports CNBC-TV18’s Nayantara Rai quoting sources.
Cairn India operates in Rajasthan block along with ONGC, where in it hold 70 percent and state-owned company owns 30 percent. The block consists three contiguous development areas DA1-which comprises Mangala, Aishwariya, Raageshwari and Saraswati, DA 2 consisting Bhagyam and Shakti and DA3 having the Kaameshwari West.
The company had been earlier under pressure as it was facing some technical difficulties at the Bhagyam field in Rajasthan. It has approval for about 40,000 barrels a day to produce from the field, but it has not been able to so far cross even 20,000 barrels.
Sources said that they have been able to overcome these technical difficulties and at the end of this fiscal they will hit their target of 40,000 barrels a day.
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In middle of the year Cairn India may once gain seek approval from government for hiking production from Aishwarya field, from the current 10,000 barrels a day to 25,000 barrels a day.
These production hikes in individual fields will help the company to increase production from entire Rajasthan block by 20 percent, something which it has been talking about. Anil Agarwal has been talking about having an integrated approach to develop Rajasthan.
In fact, Cairn India has been pitching to the Oil Ministry that its development plan should be taken up by the cabinet committee on investment (CCI), so that it can be fast tracked and approval process can be cut down to 18 months from 36 months.
In order to accelerate the approval process the company has even planned to invest Rs 5000 crore by 2016, which is much higher than CCI’s threshold of Rs 1000 crore.