Environment hurdle delaying Cairn India’s plan to increase output in Barmer

Cairn India’s efforts to enhance production to 300,000 bopd within next few years in Barmer and to expand the pipeline network to evacuate or transfer crude and gas to Salaya Bhogat from Rajasthan is getting delayed as the environment clearance has not yet been received. The current clearance is only for 200,000 bopd and a gas output of 40 mmscf. Public hearings have already taken place and Cairn India is in wait and watch mode for quite some time. The plan for the future involves drilling additional 300 exploratory or appraisal wells in the entire Rajasthan block.

Cairn India’s Rajasthan Block produced 49.1 MMbbls in the first nine months of the current fiscal. A total of 42 new wells were brought on line during the quarter, compared to 26 in Q2 FY 14. Development Area (DA) 1, comprising the Mangala, Aishwariya, Saraswati and Raageshwari oil & gas fields, while DA 2 comprises Bhagyam field. Cairn India has spent US$ 4.1 billion till the end of December 2013 on Rajasthan Block.