Cairn plans prodn from Rajasthan fields in 1yr

Cairn Energy, which had discovered huge oilfields in Rajasthan last year, will begin production from the fields within a year.

The UK-based energy firm is planning to produce up to 5,000 barrels of oil per day from two of the 12 discoveries made in Barmer district of Rajasthan by mid-2006, Mike Watts, exploration director of Cairn, said.

He said the company had submitted a development plan for Saraswati and Raageshwari filed, which lie in the centre and south of the Rajasthan block, to authorities in May, and is anticipating approval by mid-September.

Cairn had also submitted a $1 billion investment plan to put to production the largest discoveries in the block - Mangala and Aishwariya - with a target of beginning production by end-2007.While Mangala is expected to produce 1,00,000-1,10,000 barrels per day, Aishwariya may produce 5,000-15,000 barrels per day.

Watts said Cairn would submit the development plan for the Bhagyam discovery in August/September, and the well could produce 15,000-30,000 barrels per day.

The peak production from the Rajasthan fields, where Cairn estimates one billion barrels of oil reserves, is expected to be 1,50,000 barrels per day (7.5 million tonne per annum), he added.