Cairn India’s production declines 7 per cent in 2016-17


Cairn India’s production declines 7 per cent in 2016-17

In line with the trend shown by the oil and gas sector of the country, Cairn India on Tuesday reported overall production from its fields fell by around 7% with output coming down to 69.32 million barrels of oil equivalent (mboe) in FY17 compared with 74.56 mboe in FY16. Out of this, Cairn’s share of the total production dropped to 44.23 mboe from 46.92 mboe during the same period.

The country’s cumulative crude oil production during April 2016 — February 2017 was 2.58% and 2.84% lower than target and production during corresponding period of last year, respectively.

“Average gross production declined by 7% primarily due to natural decline in the fields and planned maintenance shutdown in Rajasthan during the current year.

Production at Rajasthan declined 5% due to reservoir underperformance at Bhagyam and Aishwariya partly offset by the volume ramp up from the Mangala EOR project and effective reservoir management across fields,” the statement added.

The Vedanta group company is expected to ramp up its investment though as last month the government granted an extension to the prolific Barmer oil and gas block for 10 years or economic life of the field, whichever is earlier.

However, for Cairn though the average daily total oil and gas production fell from 212,552 barrels of oil equivalent per day (boepd) in FY16 to 199,574 boepd, it was 194,343 boepd in the Q4 of FY17 compared with 191,230 boepd in Q3 of FY17, a gain of 2%. Read More…

 

Credit By : Financial Express

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