Media reports indicate that the union ministry for environment & forests received an application from Cairn India seeking permission to produce 300,000 barrels of oil equivalent and more from the RJ-ON-90/1 block.
Cairn is looking to close this fiscal with production at 200,000-215,000 barrels of oil a day.
Cairn India has been producing crude oil and gas from its Rajasthan fields for the last four years. The company is allowed to produce up to 200,000 barrels of oil equivalent (both oil and gas) and the actual output stands at 180,000 barrels of oil per day and some gas.
Earlier, the company also sought approval for an integrated block development plan in the Rajasthan asset. The plan is intended to reduce the block development time from 36 months to 18 months on average, enabling it to produce faster.
In 1994, the company and the government framed the Production Sharing Contract and the Joint Operating Agreement procedures for governance and procurement for block 1.
The company also wants the government to allow it to recover about $1 billion invested by it as exploration and development expenditure.
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