Barmer Salaya pipeline project commences

Jaipur, Apr 27(UNI) The commercial production of crude oil from Mangla Oil reserve in Rajasthan is expected to commence from June 2009, while the work on 600 Kms Barmer Salaya (Gujarat) heated and insulated crude oil and gas pipeline has commenced.

The ambitious 2.5 billion dollar project being implemented as a joint venture by CAIRN India and ONGC to revolutionise the development scenario in Rajasthan, would have an initial production capacity of 40,000 barrel oil per day in June-July 2009.

''The project would attain peak production of 1,70,000 barrel per day gradually,'' CAIRN India CEO Rahul Dhir said.

Mr Dhir told UNI ''we currently have exceeded detailed design stage of development in Mangala oil reserve in Barmer and oil field development, integrated upstream and midstream development is on course to produce first oil from this field in second half of 2009.'' Following this, the company did plan to start production in three more fields Bhagyam, Ashwarya and Ragheshwari within 12 months, Mr Dhir added.

He said that the project was all set to revolutionise the economic and development scenario in the state in general, and in the desert districts in particular.

Mr Dhir said that commencement of oil production from June or July next year would coincide with annual revenue generation of at least Rs 2,000 crore to the Rajasthan Government on account of royalty and other tax payments.

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