Cairn India gains on clearance to hike output from Rajasthan block

NEW DELHI: Shares of Cairn India gained as much as 1.96 per cent in intraday trade today after the company was granted clearance to raise crude oil production from its Rajasthan block by 50 per cent.

According to a PTI report, the Ministry of Environment and Forests has given environment clearance to Cairn India to raise crude oil production from its prolific Rajasthan block by 50 per cent to 300,000 barrels per day.

In an August 11 order posted on its website, the Ministry also gave environment clearance to Cairn to produce up to 165 million standard cubic feet per day of natural gas from the Barmer basin block.

"The Ministry of Environment and Forests has examined your application. It is noted that the proposal is for augmentation of hydrocarbon production (from 200,000 bpd to 300,000 bpd) and 165 mmscfd natural gas in RJ-ON-90/1 block, Barmer and Jalore Districts, Rajasthan.

"The Ministry of Environment and Forests hereby accords environmental clearance to the above project under the provisions of EIA notification," the order said.

The Ministry noted that the hydrocarbon resource potential of the Rajasthan block is estimated at 7.3 billion barrels of oil equivalent and the estimated cost of project is Rs 16,000 crore, added the PTI report.

At 1:58 pm, the stock of Cairn India was trading at Rs 327.30 up 1.32 per cent on the BSE. It hit a high of Rs 329.40 and low of Rs 322.65 in trade today.