Seeking to enhance the recovery of oil from its blocks in Rajasthan, Cairn India on Monday said it had drawn up big plans to lauch a largest every improved oil recovery (IOR) and enhanced oil recovery (EOR) schemes at a cost of Rs. 3,000 crore over the next three years.
Talking to reporters in Greater Noida, Cairn India CEO, P. Elango said the schemes are aimed at recovering over 90 million barrels of oil in the Rajasthan block and sustain peak output for a longer time. The company currently produces close to 1,85,000 barrels of oil per day from the Rajasthan block and will exit the financial year with over 2,00,000 bpd output, he remarked. Investments planned in IOR/EOR schemes are $575 million or roughly Rs. 3,000 crore.
The investment is part of the $3 billion capex the company had outlined last year. More than 80 per cent (over Rs. 12,800 crore) of the total capex will be spent on Cairn's prolific Barmer oil block in Rajasthan. Of the current production, about 1,50,000 bpd comes from the Mangala field, the largest among over two dozen discoveries Cairn India has made in the Rajasthan block.
Cairn India plans to drill 100 oil wells to monetise new reserves at the Rajasthan block, whose resource potential is 7.3 billion barrels of oil equivalent. It is also evaluating options to monetise the discovered gas at its Sri Lankan block. The company, which is the operator of India's biggest onland oilfield, had reported a net profit of Rs. 11,919.74 crore in the previous financial year on net sales of Rs. 17,524.15 crore.
