Cairn India starts oil production at Rajasthan

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Sept. 2 -- Cairn India Ltd. started oil production at its Mangala field in Rajasthan state in part of the larger complex of Mangala, Bhagyam, and Aishwariya (MBA) fields.

Representing the largest of 25 discoveries made by the firm in the Barmer basin on Block RJ-ON-90/1, Mangala’s initial output of 30,000 b/d will increase to 130,000 b/d by first-half 2010, with production rising to a peak of 175,000 b/d over the next 2 years.

According to Cairn, the MBA fields hold nearly 1 billion bbl of oil recoverable, including proven plus probable gross reserves and resources of 685 million boe with a further 300 million boe—or more—with enhanced oil recovery potential.

The firm said initial volumes of oil will be produced through the first processing train with a capacity of 30,000 b/d. Production will continue to increase until all four processing trains, with a total capacity of 205,000 b/d, are built and installed by 2011.

Cairn said it is building a 670-km heated and insulated oil pipeline from the Mangala processing terminal to the Gujarat coast. The first phase is targeted for completion by yearend.

The 24-in. export line will extend from Barmer in Rajasthan to a coastal location in Gujarat, via Viramgam. It will have an 8-in. gas line running most of its length, starting from the Raageshwari gas field on Rajasthan block.

Cairn said a minimum of 32 intermediate power feeding and heating stations will be built along the length of the oil pipeline, aimed at helping to maintain the required temperature within the pipeline.

Until the pipeline is complete, oil will be transported by heated trucks from the MPT to the Gujarat coast.

Cairn India operates and has a 70% stake in RJ-ON-90/1 block in Rajasthan, while India’s Oil & Natural Gas Corp. holds 30%.

Contact Eric Watkins at hippalus@yahoo.com.

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