Cairn India holds a 70% stake in the RJ-ON-90/1 block in western India, while state-run explorer Oil & Natural Gas Corporation Limited holds the balance.

The Prime Minister, Manmohan Singh dedicated Mangla oil field to the Nation at Barmer, Rajasthan. He turned the tab to mark the commencement of crude oil production from one of the significant finds in India for some years. In his inaugural address, Prime Minister complemented the operator of the field Cairn India Ltd which made this discovery in January 2004. Underlining importance of the project, he said that it will help in the development of Rajasthan, as with the royalty earnings the State would undertake developmental projects.

In his address on the occasion, Shri Murli Deora said that the inauguration of this field will be a significant milestone in country’s quest for achieving energy security. He informed that Cairn India has invested about INR100 billion in the area. The total investment in this project will be more than INR200 billion. Central Government would get INR460 billion as its Profit Petroleum revenue over the life of the project. Government of Rajasthan would get INR120 billion as royalty revenue for the first five years of project. Further, this project will provide jobs to approximately 6000 persons. As operator Cairn India holds 70% stake while ONGC holds the remaining 30% in the joint venture project. It is expected to reach peak production of about 1,75000 barrels of oil per day over next few years. At that level, oil production from this field is expected to account for about 20% of India’s domestic production.