Cairn Energy says to increase Indian oil project output

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Scottish oil and gas explorer Cairn Energy said Thursday it hopes to raise output at its Rajasthan project in India to 125,000 barrels of crude per day in the second half of 2010.

"The pipeline from the Mangala Processing Terminal (MPT) in Rajasthan to Salaya in Gujarat, is now complete," the Edinburgh-based group said in a statement.

"Hydrocarbons have been introduced into the pipeline in the second quarter of 2010 to facilitate the ramp up of production to 125,000 barrels of oil per day in the second half of 2010," it added.

Average production from Rajasthan in the first quarter stood at 17,532 bpd, while current output has increased to around 60,000 bpd.

The terminal is designed to process crude from the Mangala, Bhagyam and Aishwariya oil fields in India and has the capacity to handle 205,000 barrels of oil per day.

Cairn Energy began to pump crude from the vast reserves in the Indian desert state of Rajasthan last August.

Cairn bought the field in 2002 from Anglo-Dutch giant Shell, which had concluded it contained no major reserves. Two years later, Cairn struck oil.

Cairn also said it plans to drill four wells offshore of Greenland in the coming months as it works on another prospect.

© 2010 AFP

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