DGH approves Cairn’s Bhagyam Plan

The Directorate General of Hydrocarbons (DGH), the technical arm of the oil ministry has approved Cairn India’s proposal to commence production from Bhagyam, the second-largest oil fi eld in the Rajasthan block. However, the ministry has still not given the go-ahead. Cairn India, which operates the block with a 70 percent stake, has been waiting since one year to obtain approvals to start production. Th e DGH, which is a part of the crucial management committ ee that oversees the block had given a nod to the proposal last week. Th e management committ ee comprises Cairn India, ONGC and representatives of the DGH and the petroleum minister while the operations committ ee (OC) is composed of only JV partners Cairn India and ONGC. Cairn India has revealed that it is ready to commence production from Bhagyam from the last quarter of this fi scal. “We are ready to begin production of 40,000 bpd from Bhagyam as soon as we get the approvals. All the related infrastructure including pipeline is on track,” Mark Oliver Blanche, Director (upstream), Cairn India reportedly said..It is informed that the DGH has given its approvals to commence production from Bhagyam, along with both the management committ ee and the operations committ ee. Th e matt er is now with Jaipal Reddy’s offi ce. Th e question now lies as to why the matt er is still stuck, despite the go-ahead given by the DGH.



