Cairn Energy raises Rajasthan oil reserve estimates

London: Cairn Energy, the independent oil exploration group, has raised estimates of the oil reserves in its key fields in Rajasthan.

Cairn said that the Mangala, Bhagyam and Aishwariya fields in the north of Rajasthan were now independently certified to contain 1.7 billion barrels of proven and probable reserves, compared with a previous estimate of just over 1.6 billion barrels.

It also raised its forecast of recoverable reserves from just under 500 million barrels to 514 million barrels - and potentially as much as 685 million barrels - using enhanced oil recovery techniques.

Cairn has said that production from its 12 discoveries in the Rajasthan region would reach 150,000 barrels a day. According to the company, Mangala, the biggest oilfield to be discovered in India for 22 years, could produce 120,000 barrels on its own.

Production is scheduled to begin in mid-2007. Total investment to bring the fields into operation will be US$750mn, of which Cairn's share is US$500mn. The company expects to drill a further 10 to 15 appraisal wells this year.