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Cairn eyes 300 m barrels/day more from Rajasthan field

30 Aug 2010 Evaluate

Cairn India Ltd is looking at an incremental output of 300 million barrels of oil a day (bopd) from its oil fields in Barmer, Rajasthan. Cairn completed one year of production on August 28. It plans to get this incremental output from the enhanced oil recovery (EoR) project.

 

Current production from the fields is 125,000 bopd. Peak production from the fields based on the current approved plan by the Government is 175,000 bopd, which the company expects to reach shortly. This incremental 300 million bopd is over and above the proposed 240,000 bopd production target, which Cairn recently announced.

 

At the production level of 175,000 bopd, the Barmer fields will account for more than 20 per cent of India's current total crude production. India's total crude import is approximately 2,000,000 bopd. In the first year of its production, Rajasthan fields have contributed 12.3 million barrels to crude oil output. Domestic crude oil production in the last one year has risen to 775,000 barrels a day from 660,000 barrels a day.

 

At the rate of $75 a barrel in the coming year at the current level (125,000 bopd) of production, the Rajasthan field will reduce India's import bill by about $3.4 billion. According to estimates, the revenue to the Government and resultant foreign exchange savings accruing on account of profit petroleum (50 per cent to Government of India as per the Production Sharing Contract), royalties and corporate taxes, would be over $30 billion assuming $75 a barrel oil price (across the life of field).

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Company Name CMP
ONGC 283.35
Oil India 471.35
Jindal Drilling&Inds 542.35
Deep Industries 477.70
Asian Energy Service 315.25
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