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Cairn India to start oil production in Rajasthan from April

Cairn India is all set to start crude oil production from its prolific oil discovery next month from Barmer Rajasthan. Initial oil production is expected to be around 4,000-5,000 barrels per day and the company plans to dispatch this in tankers to the nearest refinery proposed by the government.

As per the production sharing contract (PSC) between oil ministry and Cairn India, the government has to appoint buyers for the Barmer crude oil before the production starts. Petroleum Ministry has not yet finalized the buyer for the oil, but is confident that things will be in place soon.

Mangalore Refinery and Petrochemicals Ltd, a subsidiary of state-run ONGC, is supposed to be the first buyer for the first oil production of about 30,000 barrels but this too may be difficult as there is no agreement on the selling price.

Estimation of Oil Production in First Phase

The Mangala field in Rajasthan is expected to produce 30,000 barrels of oil per day (bpd) by the second quarter of 2009-10 fiscal. Mangala is the first of the three discoveries made by Cairn and will be first to go on production. As per estimates, production from the field is expected to go up to 80,000 bpd by the end of 2009. In the first half of 2011, the production is expected to peak at 125,000 bpd.

Besides 125,000 bpd of Mangala, the adjacent Bhagyam field would produce 40,000 bpd and Aishwariya another 20,000 bpd. The peak of 175,000 bpd would be reached in 2011.

MPRL Unwilling to take more than 1.02 million tonnes of Crude Oil

While the government-nominated Mangalore Refinery and Petrochemicals Ltd (MPRL) was unwilling to take anything more than 1.02 million tonnes out of the peak output of 8.75 million tonnes, Reliance Industries has placed a demand for 30,000 to 60,000 bpd (1.5-3 million tonnes) of Cairn crude.

Essar Oil has written for 30,000 bpd this year and 120,000 bpd (6 million tonnes) by 2011 when it expands its Vadinar refinery in Jamnagar district.

You can read more on Cairn India Rajasthan Project

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Saturday, March 21st, 2009, by mystaterajasthan and is filed under "latest events rajasthan, aishwarya oil fields, bhagyam, business in rajasthan, cairn energy, cairn energy rajasthan, cairn india, cairn investment rajasthan, cairn rajasthan, essar, industry rajasthan, investment in rajasthan, investment rajasthan, mangala, mprl, oil and gas, oil and gas industry in rajasthan, rajasthan, rajasthan oil fields ". You can leave a response here, or send a Trackback from your own site.