Cairn India has been forced to cap oil production from its Rajasthan fields as the government is delaying approval for plans to raise output by 20% ostensibly because of its stand-off with the company’s majority shareholder.
Cairn India produces 1,25,000 barrels of crude oil per day from Mangala oilfield, the largest among the 15 discoveries in the Rajasthan block RJ-ON-90/1. The company, nearly four months ago, had told the oil ministry and sector regulator directorate general of hydrocarbons that output from the Mangala field can be raised to 1,50,000 bpd without any new investment from existing facilities. But the plan has not been approved by ONGC, which owns 30% in the Thar Desert fields, or the DGH.crackcrack
