Cairn sees 25% more output from Mangala

Cairn India today raised the potential plateau production of its Mangala field in Rajasthan by 25 per cent to 125,000 barrels of crude oil a day.

"The potential of Mangala to produce up to 125,000 barrels of oil a day has led to a review of the optimum scale and scope of Rajasthan (field) development and we are confident of achieving first oil in the second half of 2009," said Cairn India Chief Executive Bill Gammell in the company's operational update.

The Mangala field is part of the RJ-ON-90/1 block in which Cairn is the operator and holds 70 per cent interest. Oil and Natural Gas Corp holds the remaining 30 per cent. The company will submit an amended field development plan for Mangala to the central government this year.

"The addendum will contain a recommendation to increase the Mangala field plateau production rate consistent with the increased potential of 125,000 barrels a day," the company said in a statement. Cairn had submitted the original FDP in 2005.

The company said the FDP for Bhagyam, the second largest field in Rajasthan block, is awaiting the government's approval.

The planned plateau production from Bhagyam field is 40,000 barrels a day of oil. The Bhagyam and Shakti fields are within the second development area of the Rajasthan block.

It said the government has already approved the field development plan for Aishwariya field with a planned plateau production rate of 10,000 barrels of oil a day.

Cairn said it has completed the front-end engineering and design for the pipeline project for evacuation of crude from the Rajasthan block.

"Discussions are going on with the government regarding the potential inclusion of the midstream infrastructure within the FDP for cost recovery purposes," said Cairn.