Cairn Energy gets EAC nod to raise production capacity

Cairn Energy gets EAC nod to raise production capacity Hyderabad: An environment ministry panel has approved Cairn Energy India's proposal to increase crude oil production capacity from its Mangala Processing Terminal in Rajasthan.

The Expert Appraisal Committee (EAC) under the ministry has allowed the oil and gas major to increase oil production from 1,75,000 barrels per day (bpd) to 2,00,000 bpd and associated gas from 35 to 40 million standard cubic feet per day.

"After detailed deliberations, the Committee found the final EIA/EMP report adequate and suggested to stipulate following specific conditions along with other environmental conditions while considering for accord of environmental clearance," EAC said in the report.

The final report would be submitted to the Ministry of Environment and Forests for obtaining clearance, the EAC said.

The panel while granting permission asked the company to earmark at least 5 percent of the total cost of the project towards the Enterprise Social Commitment based on locals need, issues raised during the earlier public hearing meeting.

"Implementation of such programme should be ensured accordingly in a time bound manner," it said.

RJ-ON-90/1 block which was awarded to CEIL-ONGC joint venture for exploration and production of hydrocarbons by the Government spreads over an area of about 3112 km.

Recently, Oil Minister M Veerappa Moily has allowed Reliance Industries and Cairn India to explore oil and gas within the producing fields subject to certain conditions.

Cairn wants to drill new probes to help raise output from the Rajasthan block to 300,000 bpd from 175,000 bpd eventually.

PTI