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Cairn output gets a boost

New Delhi, June 17: Cairn India has received an environment clearance to raise crude production from its Rajasthan oil and gas block to 300,000 barrels per day (bpd) from 200,000bpd, an increase of 50 per cent. The Rajasthan block contributes 30 per cent to India’s local crude oil production.

The environment ministry has granted the clearance for the blocks, which are located in Barmer and Jalore districts of the state.

Cairn had made 31 oil and gas discoveries in the Rajasthan block, of which four — Mangala, Bhagyam and Aishwariya (together known as MBA fields) and Raageshwari — have been put on production.

The company has initiated a series of measures to produce more crude from Mangala, the largest field in the Rajasthan block.

Sources said Cairn had also discovered two gas prospects and set up a facility at its existing Raageshwari gas terminal to process the extra gas. The facility can process 100 to 300 million cubic feet gas per day.

Raageshwari is a major gas field, located in the southern parts of the Rajasthan block. At present, gas from Raageshwari is processed at the Raageshwari gas terminal, which is 80km from the Mangala oil processing terminal.

BP concern

BP, India’s single largest foreign investor, today expressed “disappointment” at the pace of approvals in the country and said the new government must reform its gas price regime for the survival of the gas industry.

BP in 2011 had bought a 30 per cent stake in Reliance Industries’ 21 oil and gas blocks, including the offshore block in the Krishna-Godavari basin (KG-D6), for $7.2 billion.

The company has been frustrated by the delays in getting approvals for its plans to revive the sagging output from the KG-D6 block.

“It has been disappointing, the pace at which certain things have been approved — the price rising up towards a market price, there have been a number of delays in seabed surveys and the appraisals of various projects,” Dudley was qouted as saying at the World Petroleum Congress in Moscow.

 
 
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