Rajasthan to earn Rs. 260 crores from oil, gas

Special Correspondent

JAIPUR: The immense scope of contribution by the oil sector to the development of economy in Rajasthan following the significant findings of huge oil reserves in western parts of the State was highlighted at a workshop on "Oil and gas exploration and production" here over the week-end. The workshop was organised jointly by the State Government's Directorate of Petroleum and Cairn Energy.

The Chief Secretary, Anil Vaish, addressing the participants, said the discovery of petroleum products would herald a new era of socio-economic development of western Rajasthan. The people in the State expect the establishment of an oil refinery soon and manufacturing of value-added products following the indications of the presence of oil reserves estimated at 380-million tonnes.

The State Petroleum Secretary, Rakesh Srivastava, said the work relating to the discovery of oil, gas and coal-bed methane was currently in progress in seven blocks, while Cairn Energy had drilled 77 wells in the Barmer-Sanchore basin. The natural gas reserves detected in the region are of the order of 3,000 to 6,000 million cubic metres.

Mr. Srivastava said the petroleum reservoir prospects survey had verified the presence of massive reserves in 11 oil and gas fields. The significant among them include Mangala, Aishwarya, Bhagyam, Saraswati, Rageshwari and Vijaya.

The Petroleum Secretary said the Central Government had incorporated three blocks in the State in the fifth round of the new National Exploration Licence Policy for allocation to the national and multinational companies through bidding. He pointed out that the State was likely to earn Rs. 260 crores from royalty and sales tax on the petroleum products during 2006-07 and said the earnings would touch the level of Rs. 2,195 crores by 2011-12.

The chief of western region of Cairn Energy, H.P. Bhalla, said Rajasthan would shortly emerge as a leading State in the production of petroleum products. A scientific presentation on the availability of oil and the potential for new oil finds in the State was also made in the workshop.

Recommended for you