"Potential can be realised only if the joint venture consisting of Cairn-ONGC is actively encouraged to undertake further exploration in the fields" said Cairn India Chairman, Navin Aggarwal
Cairn India Limited (CIL) has sought the intervention of the Finance Ministry to expedite clearances to give further impetus for exploration activity in Rajasthan. In a letter to Arvind Mayaram, Secretary, Department of Economic Affairs, Cairn India Chairman, Navin Aggarwal, has stated that Barmer basin in Rajasthan is estimated to hold 7.3 billion barrels of oil and gas in place resource base, which supports production potential of 300,000 barrels a day (bpd). “However, this potential can be realised only if the joint venture consisting of Cairn-ONGC is actively encouraged to undertake further exploration in the fields,” the letter adds.
“Our country’s flagship asset in Rajasthan contributes over Rs.15,000 crore annually to the Central and State Governments. As exploration is an essential part of production , we request expeditious approval by government to undertake exploration in Rajasthan. The Rajasthan Government fully supports this proposal and enhanced production will increase their daily royalty revenue from the current level of Rs.15 crore to Rs.25 crore a day,” Mr. Navin Aggarwal asserted.
Mr. Aggarwal explained that at 300,000 bpd, this would translate into average annual revenue to the national exchequer of Rs.30,000 crore and reduce oil import dependency by $8.5 billion. Last year, Cairn India and its joint venture partner ONGC helped reduce the national crude oil import bill by $6 billion, he added. The 3,111 sq. km. development area was ring-fenced from an exploration area more than three times its size after discoveries were made. The Directorate General of Hydrocarbons (DGH) had taken a view that exploration is not permitted within an area that has been delineated after discoveries for production of hydrocarbons. Cairn India holds 70 per cent stake in the Rajasthan assets while ONGC holds the rest.