Mangala oil field’s output touches 20k barrel oil per day mark

Oil production from Rajasthan's prolific Mangala field,which promises to provide almost 25 per cent of Indias domestic crude production,has touched the mark of 20,000 barrels per day.

Oil production from Rajasthan’s prolific Mangala field,which promises to provide almost 25 per cent of Indias domestic crude production,has touched the mark of 20,000 barrels per day.

Recently,Cairn India,the operator company at Mangala,has successfully tested first horizontal production well at this oil field at a record test production rate of more than 11,500 barrels of oil per day.

According to official sources,Mangala production continues to build according to plan with average gross production of 5,991 barrel oil per day in the second quarter.

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Currently,it is producing approximately 20,000 barrels of oil every day.

“Thirty-six Mangala development wells were drilled,of which 26 completed to support ramp up production profile…,” said an official here.

Cairn India,which has commenced crude production from the Mangala in August,has also concluded an initial agreement to supply crude oil from the Mangala field to Reliance Industries Limited (RIL) in Jamnagar,Gujarat.

This agreement is pursuant to the Government of Indias (GoI) approval allowing private refiners to qualify as additional offtakers of the Rajasthan crude.

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The crude oil will be delivered to RILs Jamnagar

refinery through heated crude oil tankers.

As in the case of GoI nominees IOC and MRPL,the commercial terms including the price for the initial offtake of the Rajasthan crude have been concluded with RIL.

The implied price realisation represents an average 10-15 per cent discount to Brent on the basis of prices prevailing for the six months to September 2009.

According to Rahul Dhir,Managing Director and Chief Executive Officer,Cairn India,”We are delighted to have started production from the Mangala field in Rajasthan and delivered the first volumes of crude to the refiners.

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“We now look forward to ramp up production to 125,000 bopd in the first half of 2010.”

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