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Cairn India to invest $2 Bn in energy sector
By siliconindia
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Friday, 27 June 2008, 17:58 IST
New Delhi: Cairn India, the Indian arm of British hydrocarbons exploration major Cairn, will invest about $2 billion in India over 18 months for developing oil fields and building a pipeline in the country, the company announced Wednesday.
"A major chunk of the project will go to Rajasthan and to coastal Gujarat. The company will be investing $850 million for the Rajasthan project," Cairn India chairman Bill Gmmell said at the company's annual general meeting here.
Cairn India is developing three oil fields in Rajasthan - Mangala, Bhagyam and Aishwariya. It also plans to start test-drilling in the Ganga Valley block in Bihar by the end of the current year or early next year.
Gmmell said the company was confident of starting crude oil supply from Managala in the second half of 2009 followed supplies from Bhagyam and Aishwariya in 2010.
"Subject to regulatory approval, the estimated production capacity of these fields has increased from 150,000 barrels oil a day to 175,000 barrels. If the use of enhanced oil recovery techniques prove successful, there will be a further resource potential of over 300 million barrels a day," he said.
The company Tuesday started work on the 600-km pipeline to transport crude oil and gas from Barmer district in Rajasthan to the coastal district of Jamnagar in Gujarat.
Gmmell added that this would be a significant achievement for a company which started operations in the country 13 years ago.