Cairn India eyes Rajasthan production lift

By OGJ editors

Cairn India Ltd., soon to be controlled by Vedanta Resources, London, says production from its complex of fields in Rajasthan, India, can reach 175,000 b/d of oil by next April after beginning this year at 125,000 b/d (OGJ Online, Jan. 27, 2010).

Cairn Energy PLC of Edinburgh, Scotland, which owns 52.11% of Cairn India, said the production boost will come from Bhagyam field, set to come onstream in the fourth quarter this year if the government of India approves.

All production now is from Managala field. After processing, the oil flows through a 366-mile heated and insulated pipeline to Salaya, Gujarat (OGJ Online, May 20, 2010).

Cairn Energy said development has begun of a third field, Aishwariya, which it expects to begin flowing next year with approval of the government and state-owned Oil & Natural Gas Corp. (ONGC), which holds a 30% interest in the block. In August, Cairn India began polymer injection for enhanced oil recovery in Mangala.

Cairn Energy expects production from the three fields to reach 240,000 b/d.

The company said completion of a sale to Vedanta of 40% of Cairn India “is expected shortly” following issuance by ONGC in late September of a “no objection certificate.” Vedanta last year offered to buy as much as 60% of Cairn India for $9.6 billion in an offer complicated by a royalty dispute involving ONGC (OGJ Online, July 12, 2011).

ONGC’s nod came after the Indian government approved the deal subject to conditions, which have been accepted by Cairn Indian shareholders. Vedanta now owns 28.5% of Cairn India. After the pending sale, Cairn Energy expects to own about 22% of Cairn India.

Related Articles

Baker Hughes: US drilling rig count drops to 1,803

03/21/2014 After consecutive weeks of significant gains, the US drilling rig count lost 6 units to 1,803 rigs working during the week ended Mar. 21, Baker Hug...

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected