Cairn India is awaiting approval of a crucial committee, where its partner Oil and Natural Gas Corp (ONGC) is represented, for raising output from its largest oilfield in the prolific Rajasthan block.
Cairn says it is ready to raise output from Mangala field in the Rajasthan block to 150,000 barrels per day from current 125,000 bpd but this needs approval of Operating Committee (OC), which comprises its representative and that of its partner ONGC, industry sources said.
Once OC gives its approval, the proposal would then go to the block oversight panel, called the Management Committee which is headed by the oil regulator, the Directorate General of Hydrocarbons (DGH).
Sources said independent consultants have certified oil reserves in Mangala field support increased output as well as the adequacy of surface facilities to handle higher production.
Mangala, the largest of the 25 oil and gas finds made by Cairn in Block RJ—ON—90/1 in Thar desserts of Rajasthan, began production in end August, 2009 and has been producing at the approved peak of 125,000 bpd for the past six months.
Sources said Cairn had in January won approval to start production from Bhagyam, the second largest discovery in Rajasthan.
While the approved field development plan for Bhagyam envisages a peak output of 40,000 bpd, the MC had for the time being given nod for production of up to 25,000 bpd from the field. Bhagyam is currently producing about 20,000 bpd and together with Mangala, the Rajasthan block is currently at 145,000 bpd.
Cairn India, which was recently taken over by London—based mining group Vedanta, is the operator of the Rajasthan block with 70 per cent interest while the remaining 30 per cent is with ONGC.