Vol. 6 | issue 7 | August 2012
Cairn: Fuelling India’s energy security
With India’s crude oil import bill rising to $141 billion for last year, oil is probably the country’s highest import item by value. The country’s import dependence on oil is likely to further increase from an already high figure of 83 per cent—today, domestic production is only 37-38 million tonnes while imports total approximately 170 million tonnes. Even as the import bill has been spiralling, Cairn India has recently produced 100 million barrels of crude from its prolific Rajasthan oil fields and has helped reduce imports by approximately Rs 45,000 crore. The company has thus contributed nearly Rs 15,000 crore to the national exchequer. Today, Cairn India produces over 200,000 bopd andcontributes over 25 per cent of the domestic crude oil production.
Cairn India has been exploring hydrocarbons in India for more than 17 years. Today, it has a proven track record of making exploration discoveries and fast tracking them to production. Three out of the seven landmark discoveries made in India between the years 2000 and 2005 were by Cairn India. This includes the prolific Rajasthan block, RJ-ON-90/1 in Barmer Basin, which is currently producing 175,000 bopd, which includes the Mangla oilfield producing at 150,000 bopd, the Bhagyam field producing 25,000 bopd and the Raageshwari and Saraswati fields which commenced production last year cumulatively producing at a rate of around 500bopd. The Aishwariya field is being developed and is expected to commence production by the end of the current fiscal. Till date, 25 discoveries have been made in the Rajasthan block RJ-ON-90/1.
According to the Ministry of Petroleum and Natural Gas (MoPNG) estimates, the national reserves of crude oil were 757.44 million tonnes in 2011. Of this, a significant amount comes from the Rajasthan block, which is now estimated to hold about 210 million tonnes of recoverable reserves, or approximately 28 per cent of national recoverable reserve.
The Rajasthan block holds a record 7.3 billion barrels of oil equivalent (bnboe), of which 3.1 billion barrels of reserves are yet to be discovered. Considering the risk prospectively, there is a potential to recover 530 million barrels of oil. The Rajasthan oil fields can produce approximately 15 million tonnes of oil, probably the highest by any field in India. This resource base can support 300,000 bopd, equivalent to a contribution of around 40 per cent of India’s current crude production, subject to further investments and regulatory approvals..........READ MORE