Cairn India receives production clearance for Bhagyam
19 January 2012
Following months of delay, Cairn India has received the clearance to go ahead with the production from the Bhagyam oilfield, the second-largest find in the exploration firm's prolific Rajasthan block.
Cairn india, acquired by London-based mining group Vendanta, is due to begin oil production from Bhagyam at the level of 20,000-25,000 barrels per day sometime this month and it would reach the approved peak output of 40,000 bpd later this year, an oil ministry official says.
The block oversight committee has been granted production approval of 25,000 bpd from Bhagyam oilfield.
Oil and Natural Gas Corp (ONGC), with a 30-per cent stake in the Rajasthan block, called for certification to ascertain whether the oil reserves would be prudently exploited and the surface facilities were capable of handling oil.
According to the official third party certification endorsing the production plan came a few weeks back, following which ONGC gave its go-ahead for production commencement.
He added prior to this, the Directorate General of Hydrocarbons (DGH) had approved the production plan. He added that the FY'12 production rate, work programme and budget for the Bhagyam field had also been approved by the block oversight committee.