31 July 2009;timesofindia.indiatimes.com:NEW DELHI: India's crude production will rise by a quarter in phases starting next month when Scottish explorer Cairn Plc's Indian arm, listed on the Bombay Stock Exchange, begins pumping from the Mangla field of its Rajasthan acreage. At an optimum production level, the acreage is estimated to reduce India's oil import bill by $6.8 billion, or 7%. "We are operationally ready to commence oil production in August," Cairn India CEO Rahul Dhir said. In its various filings to the government, Cairn has indicated that production will quickly touch 30,000 bpd (barrels per day) by the end of third quarter this year and reach a plateau of 175,000 bpd (8.75 million tonnes a year) in 2011. Goldman Sachs, however, has pegged the peak output at 190,000 bpd (9.5 million tonnes a year). The Rajasthan acreage, where flagship explorer ONGC holds 30%, will be the biggest oilfield to come on stream since the state-run company's Gandhar fields started pumping over two decades ago. Dhir said pricing negotiations for selling the initial output had been concluded at a 10-15% discount to Brent with refiner-marketer IndianOil Corporation and Mangalore Refinery and Petrochemicals Ltd, ONGC's refining subsidiary. A Cairn statement said the government has approved the revised plan to bring the Mangla field into production, including the laying of a heated pipeline to carry crude to the Gujarat coast for onward shipment and higher capacity of 205,000 bpd for cleaning up the oil before putting into pipeline. The first plant for cleaning 30,000 bpd is ready and the second unit will be ready by the fourth quarter of 2009. The third unit of 50,000 bpd capacity will follow the second unit, work on which is progressing on schedule to meet the Mangla plateau production of 125,000 bpd by the first half of 2010.
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