Cairn India today reported a massive 12-fold rise in consolidated net profit to Rs 245.19 crore in the quarter ended March 31, 2010, on back of rising oil production from its Rajasthan fields.
Cairn had reported a consolidated net profit of Rs 18.68 crore in the same period a year ago, the company said in a press statement here.
The Thar dessert oilfields of Cairn started production in late August 2009 and the earnings from sale of crude produced from the fields were absent in Q4 of 2008-09 fiscal.
Cairn is currently producing about 60,000 barrels per day of crude oil from the Mangala oilfield, the largest among 24 oil and gas finds it has made in the Barmer district in Rajasthan.
It has so far spent USD 2.29 billion in Rajasthan, of which USD 934 million was spent in FY 2009-10.
Income from operation jumped to Rs 692.83 crore in Q4 of 2009-10 fiscal from Rs 181.75 crore a year ago.
Cairn said it has completed a pipeline from the Mangala oilfield in Rajasthan to Salaya, Gujarat. The 590-km pipeline will help it transport crude oil to refiners like Reliance Industries which currently do the same through trucks.
With the completion of the pipeline, Cairn is now in a position to sell oil to Indian Oil Corp and Essar Oil, besides its current customers in Reliance and Mangalore Refinery.
Cairn currently sells about 15,000 bpd of oil to Reliance and MRPL while the rest of the current output is being used to linefill the pipeline.
The pipeline will help ramp up production from Mangala field to 125,000 barrels per day in second half of 2010. Sales to Essar and IOC may begin in next few weeks.
Cairn CEO and Managing Director Rahul Dhir said: "With the completion of the critical infrastructure, Cairn India is on the verge of significant production growth."
"The Barmer Basin continues to evolve and the company is focused on optimising the resource base with a vision for increased production from the Rajasthan block," he said.
The approved plateau production from Mangala, Bhagyam and Aishwariya- three main fields in Rajasthan- is 175,000 barrels per day or 8.75 million tonnes per annum but the company is targeting 240,000 bpd with increase in reserve base.
The proved and probable recoverable resource base in these fields is more than one billion barrel with another 1.9 billion barrels in 20 other fields.
"The vision for Rajasthan is to take production up to 240,000 bpd, with the necessary support and approvals from the Government of India, in line with Cairn India’s strategic focus to maximise reserves, production and ultimately value to all stakeholders.