Cairn India to raise crude oil production and natural gas transportation capacity

Cairn India is reportedly planning to increase its crude oil and natural gas carrying capacity by developing a new gas pipeline connecting its assets in Barmer, Rajasthan, which is expected to cost Rs14bn ($210.8m).

The firm even expects to expand its capacity for crude oil production from 200,000 barrels of oil per day (bopd) to 300,000 bopd and natural gas carrying capacity from 6.3 million standard cubic feet per day (mmscfd) to 40 mmscfd.

Press Trust of India (PTI) quoted anonymous sources as saying: "The capital cost of the project is approximately Rs14bn. The main component of investment would go into the augmentation of existing Mangala Development Pipeline (MDP) from RJON-90/1 Block (Barmer, Rajasthan) to Bhogat Terminal (Gujarat) and development of new 30in pipeline from Raageshwari Gas Terminal to Palanpur for 280 mmscfd natural gas sale.

"Augmentation of 24in crude oil pipeline carrying capacity from 200,000-300,000 bopd and eight natural gas pipeline carrying capacity from 6.3-40 mmscfd besides augmentation of natural gas based captive power generation capacity of Bhogat Terminal from 18 to 40MW."

According to a Cairn India MD and CEO Mayank Ashar, Mangala oil block in Rajasthan has also completed over 300 million barrels of crude oil production since it started operating from August 2009.

The onshore oil field, which is operated by a Cairn-ONGC joint venture, is the largest in the country. Being operational for about six years, it has saved around $25bn in energy imports for India.

PTI quoted Ashar as saying: "To date, the field has also contributed over Rs600bn gross cumulative contribution to the national exchequer.

"The Cairn India operated Rajasthan block is currently producing around 172,224 bopd, accounting for more than 27% of the country’s domestic crude production."

---

Image: Cairn India to increase crude oil production from 200,000 bopd to 300,000 bopd. Photo: courtesy of anankkml / FreeDigitalPhotos.net.