Cairn plans $3bn investment to increase oil production in India

Cairn India plans to increase its crude production by investing approximately $3bn into its energy assets in India as well as developing the successful Barmer blocks in Rajasthan state.

The company plans to increase its crude production from 180,000 barrels per day (bpd) to as much as 215,000 bpd in the Barmer blocks by the end of the fiscal year.

Cairn India interim CEO P Elango said that the company has submitted an integrated field development plan to the petroleum ministry and expects it to soon be approved to speed up production in the Barmer blocks.

“We do not provide a break-up of the capex planned for all our different projects but the overall capex planned for India is $3bn,” Elango added.

The company currently produces around 150,000 bpd of oil from the Mangala fields, 25,000 bpd from Bhagyam and 10,000 bpd from the Aishwarya fields, all of which are located in Rajasthan.

In March, the company commenced the commercial sale of natural gas from the Barmer block. It intends to produce approximately five million metric standard cubic feet (mmscf) of gas per day at early stages from the field.

Cairn currently produces around 30 mmscf of gas per day from the Raageshwari, Mangala and Bhagyam fields.

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Image: Cairn India plans to increase crude production from 180,000 bpd to 215,000 bpd in Barmer blocks in Rajasthan. Photo: courtesy of terry joyce.