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Cairn Energy strikes it lucky in India
By agencies
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Wednesday, 20 April 2005, 19:30 IST
NEW DELHI: Scottish energy major Cairn Energy has said its Rajasthan oilfield can produce up to 150,000 barrels per day by 2007 end, 50 percent more than the previously estimated 100,000 barrels per day.
The company now estimates recoverable reserves of 500 million barrels of oil at the three fields in the Rajasthan block, Cairn Energy said in a press statement.
The Edinburgh-based group - whose value has rocketed threefold to £1.75 billion in just 18 months - said the new forecast of how much oil can be extracted from the three key fields are double of previous estimates.
Cairn said production at the three fields in the north of its Rajasthan development area was expected to be 120,000 to 150,000 barrels per day compared with earlier indications of 80,000 to 100,000 bpd.
The new production estimates are more than half of what India's largest fields, Mumbai High produces.
Cairn Energy chief executive Bill Gammell said the company could yet add another 148 million barrels to the tally if enhanced recovery techniques are successful.
At $40 per barrel price of oil, a 100,000 bpd production rate would mean 1 billion dollar per year net cash flow to Cairn, assuming its partner, state-owned Oil and Natural Gas Corp, takes its share of 30 percent of production.
The company said independent assessments put total oil at the three Rajasthan fields at 1.64 billion barrels.