Cairn India, ONGC To Invest $4 Billion In Rajasthan Fields, India

Published: 19-Aug-2009

By: Staff Writer Staff Writer Staff Writer

Cairn India Limited (Cairn India) and Oil and Natural Gas Corporation Limited (ONGC) will together invest $4 billion (INR200 billion) to increase production capacity of Barmer oil fields in Rajasthan by 25,000 barrels of oil per day (bopd) to 0.2 million bopd, Economic Times reported. Previously, the production targets were revised from 0.15 million bopd to 0.18 million bopd. Both the companies will share the investment in the ratio of 70:30 in line with their stakes in the oil fields.

Cairn India's Chairman, Bill Gammell said: “By 2011, Cairn and its joint venture partner will invest up to $4 billion on the development of Mangla, Bhagyam and Aishwarya fields.”

“We will commence crude oil production from Barmer shortly. We believe there is potential to extend and enhance peak plateau production from Rajasthan fields above the level of 1,75,000 bopd,” he added.

By August 2009, commercial production at the Mangla filed in the Barmer basin is expected to start with an primary capacity of 30,000 bopd. In first half of 2010, production will be increased by a further 100,000 bopd.