Revenue declined 9 percent sequentially to Rs 2,039.5 crore from Rs 2,242.1 crore, primarily due to a 13 percent fall in crude oil prices and increase in discount to Brent for Rajasthan crude to USD 9.2 a barrel.
The Mangala polymer flood enhanced oil recovery (EOR) programme has a capex of about USD 600 million. About 100 additional wells have been planned for the project.
Cairn will raise crude oil production from Rajasthan fields by as much as 23 per cent to 215,000 barrels per day by March 2014.
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.
There seem to be some hiccups in Cairn‘s production plans in Rajasthan, according to sources. The company is believed to be preparing for a worst case scenario of an early decline of output of the Mangla field, and has apparently started updating analysts of a possible hit in production.
Cairn India has hiked Mangala reservoir estimate by 36%, reports, CNBC-TV18's Nayantara Rai quoting sources.