Government has approved Cairn Energy's one-billion dollar development plans for four of the 18 oil discoveries made by the British firm in its Rajasthan block.
"The Field Development Plans for the Mangala, Aishwariya, Saraswati and Raageshwari fields in Block RJ-ON-90/1, Rajasthan have now been approved by the Management Committee (Directorate General Hydrocarbons, Oil and Natural Gas Corp and Cairn). This final approval follows the earlier agreement on the FDPs reached at the joint venture Operating Committee between Cairn and ONGC," a company statement said.
UK-based Cairn added that it is in the process of finalising a one billion dollar bank facility that it will use to finance its share of the initial development costs for the Mangala oilfield and Raageshwari gas project.
It said this should be signed before the end of June.
The company had earlier forecast first oil from Mangala at about 30 months after project sanction.
Cairn holds a 70 per cent stake in Block RJ-ON-90/1, where it is partnered by state-owned ONGC on 30 per cent.
The company hopes to produce close to 100,000 barrels of oil per day by 2008-end.
According to Cairn's earlier statements, its present focus was to bring Mangala on stream at the earliest opportunity followed by Bhagyam and Aishwariya.
First oil from the Mangala field in Rajasthan is scheduled to commence in approximately 30 months following Field Development Plan (FDP) approval and project sanction by the Cairn Board. First oil from Bhagyam and Aishwariya is targeted to commence a year after Mangala.
{{/usCountry}}First oil from the Mangala field in Rajasthan is scheduled to commence in approximately 30 months following Field Development Plan (FDP) approval and project sanction by the Cairn Board. First oil from Bhagyam and Aishwariya is targeted to commence a year after Mangala.
{{/usCountry}}The initial development investment for Mangala and Raageshwari gas by the joint venture to first production is estimated to be in the region of $800 million.