Cairn India, ONGC plan to augment investment in Rajasthan fields

Cairn India and its joint venture partner ONGC have planned to infuse $1.5-1.8 billion more in the Rajasthan fields over the next two years. As of now, the duo have invested $2 billion in the block which will commence producing oil from August 29.

Initially, a few thousand barrels of oil will be produced per day and gradually the figure will be increased to 30,000 bpd.

Earlier in June, the long pending tussle between ONGC and the government over the investment in Cairn India’s Mangala oilfields from Rajasthan finally came to an end after the board of the state-run company gave its nod to go ahead for investing $350 million in the fields. There was news that the petroleum ministry was putting pressure on the company to take up the investment even though the project will not result in any positive cash flow for ONGC.