Cairn India to pipe oil to Gujarat

June 29, 2015

Cairn India (CIL) gained government approval for a pipeline to transport crude oil from its RJ-ON-90/1 block in Rajasthan to a coastal terminal facility in Gujarat.

According to the independent E&P company, the block contains a number of major oil discoveries, including the onshore Mangala field.

CIL operations will involve transportation of processed crude oil from the Mangala Process Terminal (MPT) to its various customers in Gujarat through the 600km long, 24in heated underground pipeline.

CIL is seeking contractors who can provide security services for a firm period of three years and extendable up to one year.

The scope of work will include security services for the pipeline from Barmer in Rajasthan to Salaya in Gujarat. It consists of two spreads comprising of above ground installations, terminals, spur lines and offices in Sanchor, Gandhinagar, Rajkot and Jamnagar.

The Rajasthan block, RJ-ON-90/1, is spread over 3111sq km in Barmer. While CIL as operator has 70% interest in the asset, Indian multinational oil and gas company, Oil and Natural Gas Corp. (ONGC) holds the remaining 30% stake.

Consisting of three contiguous development areas, currently oil is produced from the Mangala, Aishwariya, Bhagyam, Raageshwari, Saraswati and Barmer Hill fields.

During FY2015, according to CIL, gas production from Raageshwari Deep Gas (RDG) field was 16 MMscf/d and Aishwariya field crossed 30,000 boe/d mark for the first time.

Thirty-four exploration and appraisal wells were drilled in Rajasthan; and nine out of 12 exploration wells encountered hydrocarbons. Gross production was 175,144 boe/d, 4% lower YoY, because of maintenance activity at MPT and higher than expected water cut at Bhagyam.

CIL's FY2015 net revenue was 14,646 crores, which was 22% lower year-over-year (YoY), due to lower volumes and depreciation of average rupee rate YoY, the company said.

Image: pipeline construction / Cairn India



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