Cairn India on Wednesday a 10-fold jump in its quarterly net profit on back of higher crude oil price and consistent performance at the nation's biggest onshore oilfield in Rajasthan.
Consolidated net profit in the fourth quarter through March rose to Rs 2,457.79 crore from Rs 245.19 crore a year earlier, the Indian unit of Edinburgh-based
Cairn Energy Plc said in a statement here.
While 2010-11 was the first full year of consistent operations at Rajasthan oil fields, Cairn realised $94.2 per barrel for oil produced in January-March quarter as opposed to $71 per barrel the previous year.
Mangala, the biggest oilfield in the Rajasthan block, is currently producing 125,000 barrels per day but has potential to go up to 150,000 bpd without any new investment. But the oil ministry has for unknown reasons held back approval for raising output for nearly a year now.
"Our enhanced understanding of the Mangala reservoirs, following development drilling in the field, indicates a production potential of 150,000 bpd, subject to joint venture (partner ONGC) and government approval," Cairn said.
With Mangala field consistently producing at approved plateau rate of 150,000 bpd, it is now focused on the second phase of Rajasthan development.
Bhagyam field, the second largest find in Rajasthan, is likely to be put into production in October and will reach plateau production of 40,000 bpd by the calendar year-end.
"We are now focused on the second phase of the Rajasthan development to reach the currently approved plateau production of 175,000 bpd, which will account for 20 per cent of the country's crude production," Cairn said.
Further, Cairn plans to put into production Aishwariya field in 14-months from the date it receives necessary government sanctions.
Aishwariya will produce 10,000 bpd sometime in second half of 2012 calendar year and together with 150,000 bpd of Mangala and 40,000 bpd of Bhagyan, total output from Rajasthan would be 200,000 bpd (10 million tonnes a year).
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