Cairn India Ltd - Rajasthan Joint Venture starts oil production in Bhagyam
19 January, 2012
The attached release was issued today by Cairn India Limited (“Cairn India”) to the Bombay Stock Exchange and the National Stock Exchange of India.
ONGC and Cairn (Rajasthan Joint Venture) have commenced production from the Bhagyam Field in Rajasthan. Bhagyam is the second largest of 25 discoveries made so far by Cairn in the Barmer Basin in Block RJ-ON-90/1.
The Bhagyam reservoir and facilities will entail a gradual and safe ramp up to reach the currently approved plateau rate of 40,000 barrels of oil per day (bopd). The commissioning of Bhagyam is a key milestone towards achieving the target production rate of 175,000 bopd by end FY 2011-12.
The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of approximately one billion barrels. The Rajasthan Joint Venture will contribute more than 20 percent of current domestic crude production when they reach the currently approved plateau rate of 175,000 bopd.
Sudhir Vasudeva, Chairman & Managing Director, ONGC said:
“Our joint venture is well placed to further increase production from Rajasthan.
Beginning of oil production from Bhagyam field is a significant step towards further development of the MBA fields. This underlines our continued commitment to the optimal development of the Barmer basin in Rajasthan and determination to create value for the people of Rajasthan as well as the country."
Rahul Dhir, Managing Director and Chief Executive, Cairn India said:
“The commencement of production from the Bhagyam field is yet another significant milestone for the Rajasthan Joint Venture.
The commissioning of Bhagyam illustrates how supportive policies are enabling companies to unlock the hydrocarbon potential and create significant value for our Nation.
At this momentous occasion, we would like to thank all our partners, stakeholders and the people of Barmer, for their continuous support. We would like to reiterate our commitment to continue to explore, discover and produce more oil to support our country’s growth!”
Jointly issued by ONGC Limited and Cairn India Limited
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