In a significant development bound to bring cheers to the energy-starved country, Cairn India on Tuesday announced substantial rise in estimates of reserves in its Rajasthan oilfields stating that it could produce 37 per cent more oil than earlier thought.
The news bound to be welcomed as it would bring down the import component of the country's crude oil needs. Cairn India said peak output from the Thar dessert fields is now estimated at 2.40 lakh barrels per day (bpd) equalling production from state-run Oil and Natural Gas Corporation's prime Mumbai High fields in the Western offshore.
Addressing a press conference here, Cairn India CEO Rahul Dhir announced increased estimates of oil and gas in place in Barmer fields to 4 billion barrels of oil equivalent (BOE) from 3.7 billion BOE previously. Further, there could be another 2.5 billion BOE yet to be discovered. “We estimate that the fields have a potential to produce 2.40 lakh barrels of oil per day (12 million tonnes annually),” he said. The company had earlier projected a peak output of 1.75 lahk bpd.
Elated over the development, Petroleum and Natural Gas Minister Murli Deora congratulated Cairn India for the achievement and said the increase in reserves augured well for energy security of the country. “I am told that peak output from Rajasthan is now estimated at 2.40 lakh bpd and this increased output will help reduce nation's reliance on imported crude oil to meet its energy needs,” he said.
Mr. Dhir said Cairn India would commission a pipeline to transport the crude to refineries on the west coast in the second quarter. At present, oil is being transported by road.
Cairn said the oil potential from this field had been revised upwards to 6.5 billion barrels of oil equivalent from an earlier estimate of 4 billion barrels.
