Cairn India has shown interest to be a part of a joint venture GAIL India and Rajasthan State Petroleum Corp (RSPCL) for supply of natural gas in Rajasthan.
With this, the Anil Agarwal-led Cairn India plans to enter into the downstream sector, which refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from these.
Last year, GAIL and RSPCL signed a memorandum of understanding for supply of natural gas in Rajasthan. Cairn India and its partner Oil and Natural Gas Corp (ONGC) commenced commercial sale of gas from their Rajasthan block.
Meanwhile, it is learnt that in 2013-14, Cairn India plans to invest Rs 6,000 crore on exploration and development activities in its Rajasthan field.
The company also started production from Aishwaryia field. The Rajasthan block (RJ-ON-90/1) is India’s largest onshore field. Aishwariya is the third-largest discovery in the block.The initial commercial volumes will be about 5 million standard cubic feet (mscf) per day.
The RJ-ON-90/1 block currently produces about 30 mscf of gas per day from the Raageshwari Deep Gas field and as associated gas along with crude oil from the Mangala and Bhagyam fields. Cairn is planning to explore 150 wells in Rajasthan in the next three years.
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