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Cairn, ONGC to invest in Rajasthan oil fields

Wednesday, 19 Aug 2009
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Cairn India, the Indian subsidiary of Edinburgh based Cairn Energy, in partnership with ONGC, is expected to infuse $4 billion (Rs 20,000 crore) by 2011 to raise the production capacity of their oil fields at Barmer in Rajasthan by 25,000 barrels per day (bpd) of oil to two lakh bpd.

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.

The funds will be used on the development of Mangla, Bhagyam and Aishwarya fields.

The commercial production at the Mangla field in the Barmer basin is expected to begin in August 2009 with an initial capacity of 30,000 bpd. The production is expected to be increased by a further 100,000 bpd in the first half of 2010.

Also See:

Cairn likely to be allowed to sell Rajasthan output to non-PSU refiners (28-Jul-09)

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