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.
