Cairn says Rajasthan fields can yield 1,50,000 bpd

UK-based Cairn Energy said its Rajasthan oilfields can produce up to 1,50,000 barrels per day (bpd) by the end of 2007 - 50% more than the previously estimated 1,00,000 bpd.

"The company now estimates recoverable reserves of 500 million barrels of oil at the Mangala, Bhagyam and Aishwariya fields in the Rajasthan block," Cairn Energy said in a press statement.

The release said production at the three fields in the north of its Rajasthan development area was expected to be 1,20,000-1,50,000 bpd when compared with earlier indications of 80,000-1,00,000 bpd.

The new production estimates are more than half the output at Mumbai High, India's largest field.

Bill Gammell, chief executive of Cairn Energy, said the company could add another 148 million barrels to the tally if enhanced recovery techniques are successful.

At $40 per barrel of oil, a 1,00,000 bpd production rate would mean $1 billion per year net cash flow to Cairn, assuming its partner, ONGC takes its share of 30% of production.

The company said independent assessments put total oil in the three Rajasthan fields at 1.64 billion barrels.