Cairn India Gets Permission to Begin Production at Bhagyam
by Rakesh Sharma
|Dow Jones Newswires
|Wednesday, January 18, 2012
NEW DELHI (Dow Jones) India's oil ministry has approved a proposal from Cairn India to start production at the Bhagyam field in the northwestern state of Rajasthan, a senior oil ministry official said Wednesday.
Cairn will initially produce about 25,000 barrels of crude oil a day at Bhagyam, the official, who didn't wish to be named, told reporters.
Cairn, majority controlled by Vedanta Group, is producing 125,000 barrels a day crude from the Mangala field in the Rajasthan block. The potential of the Rajasthan basin is estimated at 240,000 barrels a day.
Cairn holds 70 percent and state-run Oil & Natural Gas Corp. holds the remaining 30 percent stake in the Rajasthan block.
A Cairn India spokesman couldn't be immediately reached for comment.
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