Cairn to drive oil production this fiscal: CMIE
Mumbai: Cairn India's plans for enhancing oil production from its Rajasthan block is likely to drive the domestic crude oil production by 3.1 percent in FY13, a Centre for Monitoring Indian Economy (CMIE) survey has said.
"The domestic crude oil production is likely to grow by 3.1 percent in 2012-13. (Even though) the oil output during the April-July period declined 0.6 percent, the growth is likely to recover in the coming months mainly on account of Cairn India," CMIE said in its monthly report.
The growth in production will be marginally higher this fiscal compared to the 1 percent in 2011-12, it said.
At present, the block, consisting of oil fields including Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati and Kaameshwari West is producing 175,000 barrels per day.
The Mangala, Bhagyam and Aishwariya (MBA) fields, among others, constitute Cairn's key assets in Rajasthan.
"The company is expected to enhance production from the Bhagyam and Mangala fields in the coming months. It is also expected to commission oil production from the Aishwarya oil fields in December. (Thus) Cairn is likely to drive oil production in 2012-13," the agency said.
Cairn India has embarked on a USD 2-billion expansion plan over the next two years in oil and gas exploration and production both in the country as well as abroad. Out of this, the company plans to invest nearly USD 600 million in Rajasthan exploration alone.