The management committee of the Cairn India-operated Rajasthan block has approved the proposal to increase output by 25,000 barrels a day, a senior official said.
Cairn India is currently producing 125,000 barrels a day crude from the oil fields. The potential of the Rajasthan basin is estimated at 240,000 barrels a day.
Basin potential
The Management Committee, which comprises representatives of the Petroleum Ministry and the Directorate-General of Hydrocarbons as well as the contractors, recently approved the proposal to increase output.
Recently, Vedanta Resources bought a majority stake in Cairn India from Cairn Energy in a multi-billion dollar deal. Cairn holds 70 per cent and ONGC holds the remaining 30 per cent stake in the Rajasthan block.
The currently envisaged basin potential stands at 240,000 barrels of oil per day (equivalent to a contribution of approximately 30 per cent of India's total domestic current crude production).
Sales arrangements
Cairn was looking at taking the output from the block to up to 175,000 barrels of oil per day by the end of the current fiscal.
Crude sales from the block were maintained at 125,000 barrels of oil per day levels to PSU and private refiners. Sales arrangements are in place for 155,000 barrels of oil per day with PSU and private refiners and discussions continue with the Government for further nominations.