Cairn gets nod to double output from Mangla oilfield in Rajasthan
Prasad Koparkar, senior director at CRISIL Research, and Girish Pai, head of equities at Centrum Broking, discuss what can be expected from corporate earnings in the fourth quarter.
Cairn India has won crucial nods for raising output from its largest fields in the Rajasthan block by 25,000 barrels per day.
Mangala oilfield, the largest of the 25 oil and gas finds Cairn has made in Barmer block in Thar desserts of Rajasthan, currently produces 125,000 bpd.
The company's plan to raise output from Mangala by 25,000 bpd to 150,000 bpd has got endorsements from partner Oil and Natural Gas Corp (ONGC) and third party independent valuers -- Knowledge Reservoir and Technip, sources privy to the development said.
Upstream regulator Directorate General of Hydrocarbons (DGH) had insisted on these certifications before permitting Cairn to raise output.
The Operating Committee, that manages day-to-day operations of the Rajasthan block, on March 30 approved raising Mangala output, they said, adding that Cairn now needs a final approval from the block oversight panel, called the Management Committee.
It is headed by DGH and comprises of representative of oil ministry. The Committee is likely to give its nod in days.
Besides 125,000 bpd from Mangala, Cairn currently produces over 25,000 bpd from Bhagyam field, the second largest oilfield in the Rajasthan block.
After the Committee's nod, the total output from Rajasthan would jump to 175,000 bpd.