19 Aug 2009
Cairn India, the domestic subsidiary of Edinburgh-based oil explorer Cairn Energy, and state-owned ONGC will jointly invest $4 billion (Rs 20,000 crore) to scale up the production capacity of their oil fields at Barmer in Rajasthan by 25,000 barrels of oil per day (bopd) to two lakh bopd. They had earlier revised their production target from 1.50 lakh bopd to 1.75 lakh bopd.
Cairn India chairman Sir Bill Gammell said: “By 2011, Cairn and its joint venture partner will invest up to $4 billion on the development of Mangla, Bhagyam and Aishwarya fileds.” The investment will be shared between Cairn India and ONGC in the ratio of 70:30 in line with their equity holding in the oil fields.
According to an analyst with an international firm: “Cairn is setting up a processing capacity of 2.05-lakh bopd for the Mangla processing terminal. This suggests that Cairn’s peak production will be beyond 1.75-lakh bopd”.