By IANS
Jaipur : The central government has agreed to Cairn India laying a pipeline for transporting crude oil from Mangala oil field in Rajasthan to a location in coastal Gujarat.
The Indian subsidiary of the Britain-based company in a statement Tuesday said the government had granted a ‘right of use’ permission to the company and the Oil and Natural Gas Corp (ONGC) to acquire land for laying a pipeline from Mangala oil field in Barmer district to a coastal location in Gujarat.
The proposed pipeline would connect to an existing network of pipelines and refineries, which would serve as a final coastal delivery point, with access to majority of India’s refineries.
The statement said Cairn India’s oil and gas fields at Ravva and CB/OS-2 in Andhra Pradesh will continue to be its leading producers.
The ongoing drill at Ravva and a new plant at CB/OS-2 this year would strengthen its activities in India.
The company’s overall production of oil is expected to grow by 2009, when the laying of the pipeline from Rajasthan to Gujarat would be completed.
Mangala oil field would start its production first, followed by Bhagyam and Aishwariya fields. The targeted gross plateau production from these three fields is expected at 150,000 bopd.
Once the production starts, the fields would create value for both the central and the state governments and for investors in both Cairn and Cairn India, the statement said.
The proven and probable (2P) hydrocarbons in place for the six oil fields – Mangala, Bhagyam, Aishwariya, Saraswati, Raageshwari and the Raageshwari Deep Gas – are estimated at 2.2 billion boe. The associated gross 2P reserves plus contingent resources are estimated at 864 million boe.
Additional smaller and low permeability fields and reservoirs with 2P hydrocarbons are estimated at more than 1.4 billion boe.
In the coming years, Cairn India’s focus would be on converting as much resources into 2P reserves as is economically possible.