Vedanta Resources subsidiary Cairn India commences oil production at Aishwarya field

FTSE 100-listed globally diversified natural resources group Vedanta Resources' subsidiary Cairn India has commenced oil production at the Aishwarya Field in the Rajasthan Block.

FTSE 100-listed globally diversified natural resources group Vedanta Resources' subsidiary Cairn India has commenced oil production at the Aishwarya Field in the Rajasthan Block.

Cairn India said that the Cairn-ONGC Joint Venture commenced production from the Aishwariya field, the third largest discovery in the Rajasthan Block, also referred to as "RJ-ON-90/1".

The company reported that the field would achieve a gradual and safe ramp up to reach the currently approved FDP (field development plan) rate of 10,000 barrels of oil per day (bopd).

The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of approximately one bn barrels and production from the Rajasthan Block currently contributes more than 23% of India's domestic production, Cairn India said.

Elango: Commencing oil production at Aishwariya - a 'major milestone'Mr P Elango, Member of the Board of Cairn India said: "Commencing production from Aishwariya field is another major milestone in the journey to unlock the full potential of world class Barmer basin.

"We have worked closely with all stakeholders to ensure that the project is delivered on time. The production will be gradually ramped up to 10,000 barrels per day and this will further reduce the nation's import bill."

He added: "Our gross Rajasthan development investment to date is more than INR 18,000 crores and we intend to invest over INR 6,000 crores in exploration and development activities during FY2013-14."

A crore is a unit used in the Indian currency system and it is equivalent to 10m rupees.

Cairn India's resource base is located in four strategically focused areas comprising one block in Rajasthan, two on the west coast of India, six on the east coast of India (including one in Sri Lanka) and one in South Africa.

The blocks are located in the Barmer Basin, Krishna-Godavari Basin, the Palar-Pennar Basin, the Cambay Basin, the Mumbai Offshore Basin, Mannar Basin and Orange Basin.

MF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
State pension age could rise to 68 as early as 2035 – what it means for you
State pensions

State pension age could rise to 68 as early as 2035 – what it means for you

State pension age increases could be accelerated, with the change to 68 coming in as early as 2035, affecting those who are 54 and under today.
25 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023