Cairn announces another oil discovery in Rajasthan

Cairn India announced that it had made the 26th oil discovery in its Rajasthan block. The block management committee had approved the exploration work programme for the RJ-ON-90/1 block on February 14 after which Cairn India commenced drilling of its first exploration well, Raageshwari-South-1, on February 25 located in the southern part of the block. “Technical evaluations indicate about 10 metres of gross oil column within Dharvi Dungar formation. Oil has been discovered and tested for the first time in Dharvi Dungar sands in Raageshwari-Tukaram area, where previous discoveries were in the shallower Thumbli sands,” it said.
In less than two months after getting Centre’s nod to explore more oil wells in the development area on February 14, Cairn India on Tuesday said the company has made the 26th oil discovery in its Rajasthan block. Cairn India now produces 1.7 lakh barrels of oil per day (bpd) from the prolific Barmer fields contributing about 25% to the country’s total crude oil production. However, the company has an estimated peak output capacity of 3 lakh bpd, equivalent to more than 35% of India’s current domestic output. The London-based Vedanta group acquired management control of the firm from the UK’s Cairn Energy Plc in December 2011.