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• ONGC and Cairn India have commenced production from the Bhagyam fields in Rajasthan. The commissioning of Bhagyam is a key milestone towards achieving the target production rate of 175,000 barrels of oil a day (bopd) by end of financial year 2011-12, a statement jointly issued by the partners said.Current production from the Mangala oil fields in the block is 125,000 bopd. The Bhagyam reservoir and facilities will entail a gradual ramp up to reach the currently approved plateau rate of 40,000 bopd. Bhagyam is the second largest of 25 discoveries made so far by Cairn in the Barmer Basin in Block RJ-ON-90/1.

EXPECTED PRODUCTION

• The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of approximately one billion barrels.The Rajasthan Joint Venture will contribute more than 20 per cent of current domestic crude production when they reach the currently approved plateau rate of 175,000 bopd.Mr Sudhir Vasudeva, Chairman & Managing Director, ONGC said, “Beginning of oil production from Bhagyam field is a significant step towards further development of the MBA fields.”The total resource base supports a vision to produce 240,000 bopd, (equivalent to a contribution of approximately 30 per cent of India's current domestic crude production), subject to further investments and regulatory approvals, according to Cairn.Recently, Vedanta Resources bought a majority stake in Cairn India from Cairn Energy in a multi-billion dollar deal. Cairn holds 70 per cent and ONGC holds the remaining 30 per cent stake in the Rajasthan block.

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