Cairn India will invest Rs 3,000 crore at Barmer basin in Rajasthan to plug a fall in crude oil production and recover more oil and gas from its fields.
Cairn India chief executive officer of P Elango said the company is planning to start the largest enhanced oil recovery (EOR) and improved oil recovery (IOR) programmes that will spread over next three years and will accrue an investment of $575 million or almost Rs 3,000 crore.
“This will help us extend the plateau of the fields for a much longer time,” he said.
Currently, Cairn India is producing up to 185,000 barrels per day (bpd) of crude oil from its three main fields in Rajasthan which is expected to go up to 200,000 bpd by the end of the current fiscal.
“The EOR/IOR programme will help the company recover over 90 million barrels of crude. In fact, as a medium term target, the company plans to reach 300,000 bpd from Barmer and then take it up to 500,000 bpd over a long term period,” Elango said.
“We are open to all land and offshore blocks, and it all depends on the profiles of the same,” he said.
For on land, the investments required to drill a well is $5 mn while for deep water it is $75 million which really makes it important for companies to have a proper cost recovery, he pointed out.
Cairn has five producing fields in the hydrocarbon-rich onshore Barmer basin near Rajasthan out of which Mangala is the biggest with an approved production rate of 150,000 bpd.