Cairn India aims 215,000 bopd output in FY14

Cairn India aims to produce 215,000 barrel of oil per day (bopd) during 2013-14 from its Rajasthan block.

This is based on the company managementÂ’s guidance and the expectation that the Bhagyam field would produce 40,000 bopd only by the second half of 2013-14.

The block consists of Aishwarya, Mangala, Bhagyam and Barmer Hills fields. While output from Mangala fields continues at its peak level of 150,000 bopd, output from Bhagyam field at around 20,000 bopd has still not been ramped up to 40,000 bopd due to reservoir complexities.

Bhagyam fields may take some time for ramp-up as more wells need to be drilled. Aishwarya field is likely to start producing 10,000 bopd by end-FY13.

Analysts expect the firm to drill more wells at various targeted location as well as those in the Barmer Hills that hold maximum promises following the approval by the government for more exploration activities in the block.

Analysts at Citi observe that the management sounded extremely enthused by the governmentÂ’s recent approval allowing exploration activities to be carried out in the assets under development with cost recovery assured, and plans to submit an exploration work programme shortly.

Some analysts expect Cairn India to upgrade its projection of reserves in the Rajasthan block over the next one-two years. Their analysis indicates that the in-place oil volume can potentially be more than double from the current guidance of 7 billion barrels of oil equivalent.