Mangala reservoir is producing 125,000 barrels per day, the company reports.

Cairn India Ltd., a key player in the Indian oil and gas industry, reported earnings of US $830 million (INR $37,127 million) in first-quarter 2001, a 342% increase from the same period last year. Profit after tax was $610 million (INR $27,266 million), a year-on-year increase of 869%. The company’s first quarter ended on June 30.

“The Mangala reservoir continues to perform as per expectations, and production has been maintained at 125,000 barrels of oil per day,” said Rahul Dhir, the company’s managing director and chief executive.

“The Rajasthan fields have significant growth potential, and an increase in production from this world-class asset will enhance the energy security of our nation,” Dhir said, adding that the optimal development of the resource will hinge on the support of its joint-venture partner, the state-owned Oil and Natural Gas Corp. Ltd. (ONGC), and the Indian government.

The Saraswati field in the Barmer district of Rajasthan began production at the end of May and is currently producing of 250 barrels of oil per day, according to the company. The Bhagyam field is on track, and the final testing and commissioning of initial well pads is under way. Pending the government’s approval, production is expected to being in the fourth-quarter of calendar year 2011 and hit 40,000 barrels per day by year’s end.

In addition, the development of the Aishwariya field is under way and production is scheduled to begin in the second half of 2011. The project is subject to joint venture and government approval.

In other production news, the company also reported:
- Train Four construction at Mangala Processing Terminal (MPT) is on track. Commissioning is expected in the fourth quarter of calendar year 2011, and capacity is expected to be 205,000 barrels per day.
- In CB/OS-2, the North Tapti pipeline tie-in activities by ONGC are at an advanced stage of completion. Tolling and processing of gas will commence following the completion of the project.
- In Sri Lanka, exploration drilling will begin in August 2011.
- Chikyu, a fifth-generation drill ship, has been mobilized from Japan.

Corporate Developments

The holding company of Cairn India Limited, Cairn UK Holdings Limited, along with its holding company, Cairn Energy PLC, has agreed to sell a substantial part of its shareholding in the company to Vedanta Resources PLC and Twin Star Holdings Ltd.

Following amendments to the sale and purchase agreement, Cairn Energy PLC has sold 191,920,207 (10.0%) shares to the Acquirer as of July 11. Vedanta now holds 28.5% of shares on a fully diluted basis. Acquisition of an additional 30% by the Vedanta Group is subject to government approval. Cairn Energy PLC currently remains the majority shareholder of Cairn India with a 52.1% of shares.