“We are operationally ready to commence oil production in August,” Rahul Dhir, company’s chief executive officer said.
Dhir said “We have concluded pricing negotiations with MRPL and IOC for the initial quantities of crude from Rajasthan which currently represents a 10%-15% discount to Brent.”
Cairn India has secured the government grant for the revised Mangala field development plan along with pipeline and higher processing capacity of 2,05,000 barrels per day (bpd).
Cairn India has drilled 28 wells on the Mangala oilfield in the Rajasthan blocks. Out of which, 16 have been concluded and ready for production. A 30,000 bpd first processing train is ready and the second unit will be ready by the fourth quarter of 2009.
“Cairn is working with the government authorities to start production from the Mangala field in Rajasthan in August,” a company statement said.
By the end of 2009, a pipeline shipping the crude from deserts of Rajasthan to Gujarat coast would also be concluded. A 50,000 bpd third train which will follow train two is moving forward on target to attain Mangala plateau production of 125,000 bpd by first quarter of 2010.
