Cairn Oil and Gas plans to invest Rs 12,000 crore to increase output from its Barmer block in Rajasthan over a period of seven years.

“The project will start execution after obtaining all the necessary approvals. The tentative plan is to start the project from financial year 2019-20. It will go on till 2024-25. The total project cost is estimated to be around Rs 12,000 crore,” the company said on Tuesday, while seeking government approval for the investments.

The proposed project will be implemented in a phased manner.

The plan is to ramp up the production capacity of its flagship Barmer block in Rajasthan to 400,000 barrels of oil per day (bopd) and 750 million standard cubic feet per day (mmscfd) of natural gas.

The proposed project would involve augmentation of sulphate removal plant, Mangala upgrade, effluent treatment plant and enhanced oil recovery at the Mangala, Bhagyam and Aishwariya fields by alkali surfactant polymer flooding.

Environmental clearance has been obtained to produce up to 300,000 barrels of oil per day and 165 million standard cubic feet per day of natural gas from Mangala.

Cairn has drilled over 500 wells, including over 200 exploratory and appraisal wells.

The company expects to produce up to 400,000bopd and 750mmscfd of gas, including 500mmscfd of natural gas and 250mmscfd of associated gas, considering the peak oil production at Mangala and standalone satellite fields.

Mangala and Raageshwari are two terminals for processing hydrocarbons. Mangala is producing 175,000bopd on an average and expansion is underway to produce additional 125,000bopd. Raageshwari is producing up to 55mmscfd of natural gas.