Bet big

New Delhi, March 31: Cairn India has reported a net loss of Rs 24.54 crore for the year ended December 31, 2007 but has raised the projection of crude oil production from its Rajasthan fields by 17 per cent.

Maximum production from the three main Rajasthan fields — Mangala, Bhagyam and Aishwariya — has been raised to 175,000 barrels per day (bpd) from 150,000bpd, officials said.

The Mangala field is likely to produce 125,000bpd, Bhagyam 40,000bpd and Aishwariya 10,000bpd.

Maximum production of 175,000 bpd is expected to be reached in about one year from the start of oil production, they added.

The officials said recoverable reserve from the three main fields had increased 9 per cent to 685 million barrels.

The other fields in the block have an additional 1.7 billion barrels of recoverable reserves.

Cairn will start production in the second half of 2009.

The construction of the 600-kilometre pipeline that will link the fields to the refineries will start in the second half of 2008.

The first phase of the project from Barmer to the Viramgam pumping station in Gujarat is expected to be completed early next year.

Cairn India will invest $2.6 billion in the next two years.

This includes $800 million for the pipeline and $1.8 billion for the development of the fields.

The company had reported a net loss of Rs 21.17 crore in the corresponding period of the previous year.

Total income increased to Rs 1,144.67 crore for the year ended December 31, 2007, compared with Rs 44.96 crore in the year-ago period.