Cairn revises Barmer oil field upwards to 6.5 bn barrels

March 23rd, 2010 - 4:20 pm ICT by IANS  

New Delhi, March 23 (IANS) Energy major Cairn India, which operates the biggest on-land oilfield in Rajasthan’s Barmer district, said the oil potential from this field had been revised upwards to 6.5 billion barrels of oil equivalent — from an earlier estimate of 4 billion barrels.
“We have done a comprehensive internal review of the block. We had also asked a US firm DeGolyer and MacNaughton to conduct an independent estimate and it was in line with our own estimates,” said Cairn India Managing Director and Chief Executive Rahul Dhir.

“We understand that there is 6.5 billion barrels of oil equivalent to be found and extracted (in Barmer block, Rajasthan),” said Dhir.

Cairn holds 70 percent stake in the field, while state-run ONGC holds the remaining 30 percent. So far Cairn India has invested about $4 billion. It will invest another $2 billion by 2011.

The company currently produces 20,000 barrels and expects this to increase to 125,000 barrels by the middle of 2010.

The approved maximum capacity for the Barmer field is 175,000 barrels of oil per day (bopd). With the increase in the size of the field, this capacity could go up to as high as 240,000 bopd.

“The resource base provides a basis for a vision to produce 240,000 barrels, subject to government of India’s approval and additional investments,” said the company in a statement.

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