Cairn India today said it has commenced crude oil production from the Bhagyam field, the second-largest oil discovery in its Rajasthan block.
"The Bhagyam reservoir and facilities will entail a gradual and safe ramp-up to reach the currently approved plateau rate of 40,000 barrels of oil per day," Cairn said in a press statement here.
Cairn India, in which mining group Vedanta Resources Plc recently bought a majority stake, produces 125,000 barrels a day of crude from the Mangala field, the biggest in the Rajasthan block.
"The commissioning of Bhagyam is a key milestone toward achieving the target production rate of 175,000 bpd by the end of the 2011-12 fiscal," the statement said.
The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of about one billion barrels. The Rajasthan fields will contribute more than 20% of current domestic crude production when they reach the currently approved plateau rate of 175,000 bpd.
Cairn India is the operator of the Rajasthan block, holding 70% interest, while state-owned Oil and Natural Gas Corporation (ONGC) has the remaining 30%.
Bhagyam is the second-largest of 25 discoveries made so far by Cairn in Barmer Basin Block RJ-ON-90/1.
Cairn India Managing Director and Chief Executive Rahul Dhir said commencement of production from the Bhagyam field is yet another significant milestone for the Rajasthan project.
"The commissioning of Bhagyam illustrates how supportive policies are enabling companies to unlock the hydrocarbon potential and create significant value for our nation. We would like to reiterate our commitment to continue to explore, discover and produce more oil to support our country's growth," he added.
Cairn began crude oil production from the Mangala oilfield at the end of August, 2009.
Cairn India today said it has commenced crude oil production from the Bhagyam field, the second-largest oil discovery in its Rajasthan block.
"The Bhagyam reservoir and facilities will entail a gradual and safe ramp-up to reach the currently approved plateau rate of 40,000 barrels of oil per day," Cairn said in a press statement here.
Cairn India, in which mining group Vedanta Resources Plc recently bought a majority stake, produces 125,000 barrels a day of crude from the Mangala field, the biggest in the Rajasthan block.
"The commissioning of Bhagyam is a key milestone toward achieving the target production rate of 175,000 bpd by the end of the 2011-12 fiscal," the statement said.
The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of about one billion barrels. The Rajasthan fields will contribute more than 20% of current domestic crude production when they reach the currently approved plateau rate of 175,000 bpd.
Cairn India is the operator of the Rajasthan block, holding 70% interest, while state-owned Oil and Natural Gas Corporation (ONGC) has the remaining 30%.
Bhagyam is the second-largest of 25 discoveries made so far by Cairn in Barmer Basin Block RJ-ON-90/1.
Cairn India Managing Director and Chief Executive Rahul Dhir said commencement of production from the Bhagyam field is yet another significant milestone for the Rajasthan project.
"The commissioning of Bhagyam illustrates how supportive policies are enabling companies to unlock the hydrocarbon potential and create significant value for our nation. We would like to reiterate our commitment to continue to explore, discover and produce more oil to support our country's growth," he added.
Cairn began crude oil production from the Mangala oilfield at the end of August, 2009.
