The Hindu Business Line : Over 2.5 bbl of oil reserves in Rajasthan: Cairn

THE Edinburgh-based Cairn Energy Plc has announced that its oilfield in Rajasthan contains over 2.5 billion barrels of oil reserves. In a statement issued today, Cairn said: "We currently estimate the total oil in place, in all 12 existing discoveries to date in the Rajasthan basin, excluding gas, to be in excess of 2.5 billion barrels (bbls)."

The company said it was making good progress in its efforts to fast track development of the three largest discoveries to date in the north — Mangala, Bhagyam and Aishwariya. The combined 2P (proved plus probable) oil in place for the Fatehgarh reservoir in these three fields has been independently certified to be 1.64 bbls, the company stated.

Cairn estimates the associated reserves based on secondary recovery are at least 500 million barrels.

Additional recovery from Mangala and Bhagyam using enhanced oil recovery (EOR) techniques has the potential to add up to a further 150 mmbbls (million barrels) of oil reserves. The combined production target for these three northern fields is currently planned to be between 120,000 and 150,000 barrels of oil a day (bopd), Cairn added. First oil production from Mangala is scheduled for the end of 2007.

Mr Bill Gammell, Chief Executive of Cairn, said: "Cairn is now moving rapidly from discovery to production in Rajasthan. As we continue exploration and appraisal, it is very clear that this basin will not only provide substantial oil production and cash flow from the large northern fields but will also provide future growth and re-investment potential for Cairn from other reservoirs and smaller fields, both discovered and yet to be discovered."

Regarding the final draft of the field development plans for the Mangala, Aishwariya, Saraswati and Raageshwari fields, the company said it is scheduled for submission in August to its joint venture partner ONGC for a final review, after which they will be submitted to the Government of India for approval. Besides, the front-end engineering design (FEED) for the Mangala field development is largely complete and the selection process for the detailed engineering design contractor is underway.

The company added that the declaration of commerciality for the Bhagyam and Shakti discoveries which is the first step before the preparation and submission of the field development plan has been submitted to ONGC for review.

``It is planned that the development of these discoveries will be integrated with the development of the Mangala and Aishwariya discoveries,'' the company said. The Government was in the process of appointing its nominee to take delivery of the oil produced from these discoveries.

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