Cairn Energy said output at its Sangu field in Bangladesh was dropping, although the company and its joint venture partners were planning to commence a compression project in 2009 which should help to increase and extend output.
The discovery of oil in Rajasthan in 2004 transformed Cairn Energy, lifting it from obscurity into the FTSE-100 index of the UK’s largest companies.
The group said construction on the Rajasthan project was making progress and it plans to commence production in the third quarter of 2009.
Construction of the various upstream and midstream elements of the Rajasthan development project is well under way, with almost 10,000 workers actively involved in the current operations, said chief executive Sir Bill Gammell.
We will commence production in 2009 and Cairn is funded to meet this target, Gammell added. Cairn Energy comprises two separate business divisions. One is Cairn India, which has interests in India and Sri Lanka. It is listed on the Bombay Stock Exchange and is majority owned by Cairn. The other business is Capricorn Energy, an exploration-focused unlisted subsidiary with assets in Bangladesh, Nepal, northern India, Greenland, Tunisia, the UK and elsewhere.
The group has acquired two new blocks in southern Greenland and has finished some initial work on all of its operated blocks.
