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Cairn India Receives Production Clearance for Bhagyam

  • Following months of delay, Cairn India has received the clearance to go ahead with the production from the Bhagyam oilfield, the second-largest find in the exploration firm's prolific Rajasthan block.Cairn india, acquired by London-based mining group Vendanta, is due to begin oil production from Bhagyam at the level of 20,000-25,000 barrels per day sometime this month and it would reach the approved peak output of 40,000 bpd later this year, an oil ministry official says.The block oversight committee has been granted production approval of 25,000 bpd from Bhagyam oilfield.Oil and Natural Gas Corp (ONGC), with a 30-per cent stake in the Rajasthan block, called for certification to ascertain whether the oil reserves would be prudently exploited and the surface facilities were capable of handling oil.

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