Cairn India Ltd., said the Cairn-ONGC Joint Venture (JV) has commenced commercial sale of gas from the Rajasthan Block (RJ-ON-90/1) in Barmer basin. The project will produce initial commercial volumes of around 5 million metric standard cubic feet (mmscf) per day.
The gas sales was inaugurated on Saturday by the Minister of Petroleum and Natural Gas M. Veerappa Moily in Barmer in Rajasthan in the presence of the Chief Minister Ashok Gehlot, the Minister of State of Petroleum and Natural Gas P. Lakshmi.
Presently, the RJ-ON-90/1 block produces around 30 mmscf of gas per day from the Raageshwari Deep Gas field and as associated gas along with crude oil from the Mangala and Bhagyam fields. At present, this production is being used to meet the energy requirements at the Mangala Processing Terminal and the 600 km crude oil pipeline primarily for the purpose of heating the waxy crude produced from the block.
Following government's decision to allow exploration, Cairn-ONGC joint venture has commenced drilling of the first exploration well, after a gap of more than five years, in the prolific Barmer Basin.
The continued exploration program in the block targets several other gas prospects that are expected to add to the production of natural gas from the block over the years. This will pave the way in future for developing the Rajasthan state as a gas-based economy, the company said.
Cairn India Member of the Board P. Elango said, "We are delighted to commence gas sales from Rajasthan for the first time. We have been using the gas produced from Rajasthan block for internal operations, and today we have commercialized it. The Rajasthan block has unexplored potential for both oil and gas and the recent government decision for further exploration enables us to explore more and produce more. Oil has emerged as the largest source of non tax revenue for the Government of Rajasthan. We expect gas to trigger large scale infrastructure development in future and we look forward to partner with the Government of Rajasthan in this journey."
At the BSE, Cairn India shares are currently trading at Rs.283.35, up 2.09 percent from the previous close.
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