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Cairn, ONGC to invest $1.5-1.8 bn more in Rajasthan oil fields

27 Aug 2009 Evaluate

Cairn India and its partner Oil and Natural Gas Corp (ONGC), which will this weekend start oil production from their prolific Rajasthan fields, will invest USD 1.5-1.8 billion more in the desert block over the next two years. Its Mangala field will start producing few thousand barrels of oil per day from August 29 and gradually ramp up to 30,000 bpd. Mangala field will hit peak output of 1,25,000 bpd (6.25 million tonnes) in the first half of 2010 and together with Bhagyam and Aishwariya, the production will top 1,75,000 bpd (8.75 million tonnes a year) in 2011.

Cairn and ONGC have till date spent USD 2 billion (on Rajasthan block) and in 2010 and 2011, another USD 1.5 to 1.l8 billion is planned.

The two are investing USD 2.6 billion in developing the Mangala field -- the largest oil find in the country in more than two decades, and another USD 600-700 million on Bhagyam and Aishwariya fields. Besides close to USD 1 billion is being spent on laying a pipeline to Gujarat coast to transport the oil to local refineries.

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Peers
Company Name CMP
ONGC 283.95
Oil India 470.10
Jindal Drilling&Inds 540.15
Deep Industries 476.90
Asian Energy Service 306.05
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