Cairn India to Boost Domestic and International Oil Exploration and Production
The plan of Cairn India to boost output from its Rajasthan oil exploration block is most likely going to push next year’s domestic oil production by 3.1 percent, according to a survey of the Centre for Monitoring Indian Economy.
Domestic oil output is probably going to grow by 3.1 percent between 2012 and 2013. Even if production during the period from April to July fell by 0.6 percent, growth may possibly recover in the months to come, mainly due to Cairn India, according to CMIE’s monthly report.
Furthermore, the report showed that the boost in output will be slightly higher for the current fiscal year relative to the 1 percent growth in the fiscal year of 2011- to 2012.
The oil exploration block, which presently consists of Mangala, Aishwariya, Bhagyam, Saraswati, Kaameshwari West and Saraswati oil fields, has a total daily output of 175,000 barrels.
The fields of Bhagyam, Aishwariya and Mangala in particular, comprise the primary assets of Cairn in Rajasthan. The company is anticipated to allocate multiple oil investments in order to boost output from the Mangala and Bhagyam fields in the months to come. Moreover, it is expected to commission the production of oil from the Aishwarya fields in the month of December. This means that Cairn may most likely increase production of oil in 2012 to 2013, said the agency.
Cairn India has set a $2 billion oil investment plan in the coming years, particularly 2013 and 2014, through oil and gas exploration and production within India and internationally. Out of the $2 billion plan, the company is allocating $6 million for oil exploration in Rajasthan alone.