Crude production to touch all-time high

New Delhi
Nov. 4: The Union petroleum minister, Mr Murli Deora, said on Wednesday that the country’s crude oil production is likely to jump by 11 per cent in the current financial year to touch the highest-ever mark of 36.7 million tonnes.
This increase, Mr Deora said, was mostly on the back of output from Cairn India’s prolific Rajasthan oil field.
“During the current financial year, crude oil production should increase by 11 per cent to reach 36.708 million tonnes. It is also projected that the production of natural gas during the current financial year should reach 50.211 billion cubic metres (bcm), which is 52.8 per cent higher than the previous year. This has been a landmark year for the additional production of oil and gas,” said Mr Deora at the Economic Editor’s Conference organised jointly by the finance ministry and the PIB.
Rajasthan will account for 75 per cent of the additional 3.2 million tonnes of crude to be produced this year.
The production from Cairn’s field is likely to increase to 30,000 barrel per day. This production is further expected to increase to a peak level of 1,75,000 barrels per day in 2011 on completion of the transportation pipeline. The government has designated IOC, MRPL and HPCL for lifting part of crude oil production from this block.
The minister said that during the current financial year, there have been 15 new oil discoveries by ONGC, OIL and private companies that should contribute to increasing the availability of oil in the country.
The increase in the gas is on the back of Reliance Industries starting production from its D6 block in KG basin block. The production from D6 block is likely to increase to 60 million cubic metres a day (MMSCMD) in December 2009, 70 MMSCMD in January 2010 and 82 MMSCMD in March 2010. The production is likely to be maintained in the range of 82-89 MMSCMD upto March 2012.
Meanwhile, the petroleum secretary, Mr R.S. Pandey, said that there will be no impact on investments in the oil sector due to allegations of corruption against the previous directorate general of hydrocarbons, Mr V.K. Sibal.
He also said that there is no need to give the directorate general of hydrocarbons the authority like that of Trai in the telecom sector.