Cairn India Ltd. said it would invest $200 million over the next three years in developing natural gas finds in the Rajasthan block, reports said.
Cairn, in its 2013-14 annual report said the $200 million investment during FY2015-17 would be towards developing existing Raageshwari Deep Gas field and associated field facilities and pipeline. In the report, Chairman Navin Agarwal said, "Leveraging the gas potential of the Rajasthan block is a priority for Cairn India."
Cairn, which commenced exploration in January 2004, discovered Mangala field - the largest onshore oil find in India in the last two decades - has till date made 31 discoveries in the Barmer basin block. Mangala was put into production in August-end 2009 and is presently producing around 120,000 barrels per day.
In March last year, it started gas production from the block with a cumulative sale of 2.7 billion standard cubic feet in 2013-14 fiscal. Cairn had produced an average of 7 mmscfd in 2013-14, the report said.
It, however, estimates a higher gas potential in the block and is building facilities that can handle up to 100 million standard cubic feet per day (mmscfd) of output.
"With the addition of higher capacity rigs in the drilling program, Cairn India is drilling two high impact prospects to test potential gas accumulation in the deeper sections. The initial results obtained are encouraging and testing is underway," it said.
As on March 31, 2014, Rajasthan block has estimated in-place resources of around 4.6 billion barrel barrels of oil and oil equivalent gas.
The prolific MBA oil fields, which are currently on production, hold 2.2 billion barrels of resources.
It estimated a resource base of around 71 million barrels of oil equivalent in the Raageshwari Deep Gas field but the block may hold larger reserves.
Bhagyam, the second biggest find in the area, began producing in 2012 and is currently doing around 25,000 bpd, while Aishwariya oilfield, third of the famous MBA (Mangala-Bhagyam-Aishwariya) discoveries in the block, is at around 25,000 bpd.
Cairn holds 70 percent interest in the block, whereas state-owned Oil and Natural Gas Corporation Ltd. (ONGC) holds the remaining 30 percent.
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