To finance the oil and gas field development project in Rajastan, UK-based Cairn Energy is seeking a $1 billion bank assistance. The company sources confirmed that the financial deal would be finalised before June end.
The development plans for Mangala, Aishwariya, Saraswati and Raageshwari oil and gas fields in Rajasthan have been approved by the company's management committee with members from directorate-general of Hydrocarbons and Oil and Natural Gas Corporation.
This final approval is followed by the earlier agreement between operators Cairn and ONGC.
Cairn operates under a production sharing contract signed on 15 May 1995 for these fields. In the 1,858 square kilometre development area, Cairn has 70 per cent stake while ONGC having the remaining 30 per cent.
"Cairn made a major oil discovery at Mangala at the beginning of 2004. And the company has so far made 18 discoveries in Rajasthan. Cairn holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in India and Nepal. The focus on South Asia has already resulted in a significant number of oil and gas discoveries," company official said.
India produces 6.5 lakh barrels of oil per day (bpd) of which 50,000 bpd comes from the Cairn-operated Ravva field. India currently imports approximately 2 lakh bpd.
Cairn has opened a new headquarters at Gurgaon on the outskirts of Delhi to provide improved support for the Rajasthan project team and to manage the company's business interests in India.
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