Cairn India has won crucial nods for
raising output by 25,000 barrels per day (bpd) from its Mangala oilfields in the Rajasthan block.
Mangala oilfield, the largest of the 25
oil and gas finds Cairn has made in Barmer block in Thar desserts of Rajasthan, currently produces 125,000 bpd.
The company's plan to raise output from Mangala by 25,000 bpd to 150,000 bpd has got endorsements from partner Oil and Natural Gas Corp (ONGC) and third party independent valuers - Knowledge Reservoir and Technip, sources privy to the development said.
Upstream regulator Directorate General of Hydrocarbons (DGH) had insisted on these certifications before permitting Cairn to raise output.
The Operating Committee, that manages day-to-day operations of the Rajasthan block, on March 30 approved raising Mangala output, they said, adding that Cairn now needs a final approval from the block oversight panel, called the Management Committee.
It is headed by DGH and comprises of representative of oil ministry. The Committee is likely to give its nod in days.
Besides 125,000 bpd from Mangala,
Cairn currently produces over 25,000 bpd from Bhagyam field, the second largest oilfield in the Rajasthan block.
After the Committee's nod, the total output from Rajasthan would jump to 175,000 bpd.
Shares of Cairn India were trading higher in the afternoon trade on the Bombay Stock Exchange - up 1.66 per cent at Rs 346.65.
With PTI inputs
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