New Delhi, Apr 30 (UNI) Cairn India today said it plans to pump in an additional 2.6 billion dollars in the development of various projects in Rajasthan over the next two years.
''We plan to invest an additional 2.6 billion dollars in the development over the next two years,'' Cairn India CEO Rahul Dhir said.
He added that along with the joint venture partner ONGC, the company has already invested more than one billion dollars in Rajasthan.
Meanwhile, the company also said that the Petroleum Ministry has agreed to shift the delivery point with respect to the contract area under the RJ-ON-90/1 Production Sharing Contract to Salaya at the Gujarat coast.
''This is a very positive development for the project,'' the CEO said.
The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.
With oil field development work in Rajasthan already started, the integrated upstream and midstream development is on course to produce first oil from Mangala in the second half of 2009, he added.
All major civil and construction contracts have been awarded and long lead time items have been procured, Mr Dhir said.
This is a project of national importance and a landmark project for Rajasthan, generating very significant royalties for the state and creating more than 10,000 jobs in Barmer during the construction phase, Mr Dhir added.
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production Sharing Contract (PSC) signed on May 15, 1995.
The main development area (1,858 sq km), which includes Mangala, Aishwariya, Saraswati and Raageshwari, is shared between Cairn India and ONGC, with Cairn India holding 70 per cent and ONGC having exercised their back in right for 30 per cent.
A further Development Area (430 sq km), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion.
At present, the country imports about 20,00,000 barrels of oil per day (bopd). It produces about 7,00,000 bopd itself of which about 50,000 bopd comes from the Cairn India operated Ravva field on the east coast of India.
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