Cairn India has discovered two new oil fields near Kawas village in Barmer, Rajasthan, estimated to contain about 600 million barrels of in-place resources.
The discovery, which takes the total number of oil fields in Barmer block to 28, is expected to add significantly to the existing production of 1.85 lakh barrels of oil per day from Cairn India’s Rajasthan fields.
“Cairn’s Rajasthan fields produced 1,84,982 barrels of oil per day in the third financial quarter and output may rise to 2 lakh barrels of oil per day at the end of the financial year as it is poised to put satellite fields on production. The government’s share of profit from the Rajasthan fields went up from 25 to 30 per cent this quarter,” the company said in a statement.
It added that since the resumption of exploration in March 2013, nine exploration and appraisal wells have been drilled until third quarter of FY14. “The initial results have been encouraging with these discoveries and have a success ratio of over 50 per cent. We have contributed Rs 6,400 crore to the Central and state governments in taxes and royalties in the third quarter and Rs 18,800 crore in the first nine months of this financial year. The Rajasthan block has contributed over 200 million barrels since inception catering to country’s energy needs,” the firm said.
Commenting on the discovery, Cairn India chief executive officer P Elango, said, “Our focus on execution is yielding results. The renewed exploration and appraisal programme during 2013 resulted in discoveries in Rajasthan. Our strategy of active exploration across the portfolio opens up potential for resource accretion in the near term. We are keen on evaluating the blocks in NELP-X announced by oil ministry recently, to build on our exploration-led growth in India.”