The directorate general of hydrocarbons (DGH), the technical arm of the oil ministry approved Cairn India’s proposal to commence production from Bhagyam, the second-largest oil field in the Rajasthan block. The company, which currently operates the block with a 70% stake, waited for a year to obtain approvals to start production.
The DGH gave its approvals to commence production from Bhagyam, along with both the management committee and the operations committee. The management committee comprises Cairn India, ONGC and representatives of the DGH and the petroleum minister while the OC is composed of only JV partners Cairn India and ONGC.
The representatives of the oil ministry also gave their in-principle nod to commence production.
Currently, Mangala, the biggest of the 18 discoveries in the Rajasthan block, is producing 125000 bpd. Bhagyam is targeted to produce a peak output of 40000 bpd by the end of 2011, which would help Cairn achieve the approved peak output of up to 175000 bpd.
The approvals were stuck for more than a year as previously, the ministry wanted all prior entitlement issues related to the Vedanta deal to be resolved before giving Cairn a go-ahead to start production from the oil field.
.jpg){kind=logo}
Comments
All Comments (0)
Join the conversation