Cairn to pump more oil
-
27/08/2008
-
Asian Age (New Delhi)
New Delhi,
Cairn India's Rajasthan fields will pump over 16 per cent more oil at 175,000 barrels per day and will contribute over one-fifth of the country's current domestic oil output, when it commences production in second half of 2009.
Cairn has submitted a revised development plan for the Mangala oil field, largest in the Rajasthan block and has got investment approval for the sec ond biggest field called Bhagyam, company's chief executive, Mr Rahul Dhir said on Tuesday.
"This will allow us to reach an estimated sustainable plateau production rate of 175,000 bpd from the three proven fields of Mangala, Bhagyam and Aishwariya (MBA) up from the previous forecast of 150,000 bpd,' he said.
The revised field development plan from Mangala envisages a 25 per cent increase in peak production at 125,000 bpd.
Mr Dhir said the company has contracted two drilling rigs and development drilling would begin in the last quarter of 2008 calender year. "The focus for us now has shifted to execution of the ground,' he said, adding the company was on course to deliver first oil from Rajasthan in second half of 2009. Together with enhanced oil recovery (EOR) scheme, the Rajasthan block can sustain peak output of 175,000 bpd for 10 years. A pipeline is being laid from Barmer district of Rajasthan to Gujarat coast for transporting the crude to refineries.
Mr Dhir said the company was also said to drill its first well in the Bihar block later this year.
In keeping with the schedule of the second half of 2009, all major contract work and construction has been awarded in Rajasthan, and long lead items have either been ordered or procured, Cairn said.
Construction firm Larsen and Toubro Ltd (L&T) has been awarded an Engineering Procurement and Construction (EPC) Contract for the pipeline, while Indian Oil Tanker would build a terminal at Viramgam in Gujarat.
Jindal SAW Ltd and Perma-pipe Middle East FZE together would be supplying a 24 inch insulated pipeline and the eight inch linepipe with polyethylene coating.
"The development of both the pipeline and its associated operations along with the processing facilities at Mangala are on track and all the major contracts forequipment have been placed,' Mr Dhir said.