According to a survey by Centre for Monitoring Indian Economy (CMIE), India's crude oil output may expand 3.1 percent in 2012-13 if Cairn India's plan to enhance oil production from its Rajasthan block materialises.
Even though the oil output during the April-July period declined 0.6 percent, the growth may recover in the coming months mainly on account of Cairn India, CMIE said in its monthly report.
The growth in production will be marginally higher this fiscal compared to the 1 percent in 2011-12, it said. At present, the block, consisting of oil fields including Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati and Kaameshwari West is producing 175,000 barrels per day.
The Mangala, Bhagyam and Aishwariya (MBA) fields, among others, constitute Cairn's key assets in Rajasthan. The company is expected to enhance production from the Bhagyam and Mangala fields in the coming months. It is also expected to commission oil production from the Aishwarya oil fields in December. Thus Cairn may drive oil production in 2012-13, the agency said.
Cairn India has embarked on a $2-billion expansion plan over the next two years in oil and gas exploration and production both in the country as well as abroad. Out of this, the company plans to invest nearly $600 million in Rajasthan exploration alone.